MONDAY, NOVEMBER 5, 1979
5
MONEY SUPPLY
M1 ROSE BY 3.5 PER CENT IN SEPTEMBER, WITH MOST OF THE INCREASE BEING IN DEMAND DEPOSITS (THIS IS CONSISTENT WITH FUNDS HELD AVAILABLE FOR STOCK AND GOLD MARKETS INVESTMENT). M2 ROSE BY 2.3 PER CENT AND M3 BY 2.7 PER CENT.
IN THE LATEST THREE MONTHS M2 HAS RISEN AT AN ANNUAL RATE OF 27 PER CENT, AND M3. AT AN ANNUAL RATE OF 28 PER CENT. THIS INDICATES THAT THE MONEY SUPPLY IS NOW GROWING CONSISTENTLY WITH THE GROWTH OF THE ECONOMY AS A WHOLE. THE REVISED FORECAST GROWTH RATE IN 1979 OF GDP AT CURRENT PRICES IS ABOUT 27 PER CENT.
CREDIT TO THE ECONOMY
LENDING IN HONG KONG BY BANKS AND DEPOSIT-TAKING COMPANIES TOGETHER ROSE BY 2.8 PER CENT IN SEPTEMBER, IN THE LAST THREE MONTHS, THIS MEASURE, WHICH IS THE MOST COMPREHENSIVE FIGURE FOR CREDIT MADE AVAILABLE TO THE ECONOMY, HAS RISEN AT AN ANNUAL RATE OF 30 PER CENT, A LITTLE HIGHER THAN THE COMPARABLE FIGURES FOR THE MONEY SUPPLY.
LENDING IN HONG KONG BY BANKS ALONE ROSE IN SEPTEMBER BY 3.8 PER CENT, AND IN THE LAST THREE MONTHS BY 7.8 PER CENT.
LENDING IN HONG KONG BY DEPOSIT-TAKING COMPANIES ROSE IN SEPTEMBER BY 3.9 PER CENT, AND BY 9.3 PER CENT IN THE LAST THREE MONTHS.
LOANS ABROAD
THE TOTAL OF LOANS ABROAD BY BANKS AND DEPOS IT-TAK ING COMPANIES TOGETHER FELL SLIGHTLY, WITH BANK LENDING UP BY $77 MILLION TO $20 134 MILLION, AND LENDING BY DEPOSIT-TAKING COMPANIES DOWN BY $134 MILLION TO $22 603 MILLION.
BALANCE SHEET RATIOS
THE AVERAGE LIQUIDITY RATIO FOR BANKS ROSE DURING SEPTEMBER TO 49.2 PER CENT, FROM 48.7 PER CENT IN AUGUST. THE IR LOAN/DEPOSIT RATIO ALSO ROSE, FROM 83.8 PER CENT AT THE END OF AUGUST TO 85.0 PER CENT AT THE END OF SEPTEMBER.
THE LOAN/DEPOSIT RATIO FOR ALL DEPOSIT-TAKING COMPANIES FELL SLIGHTLY TO 55.8 PER CENT, FROM 56.4 PER CENT AT THE END OF AUGUST,
ANALYSIS OF LENDING BY SECTORS
THE QUARTERLY ANALYSIS OF LOANS AND ADVANCES SHOWS THAT ADVANCES BY BANKS AND DEPOSIT-TAKING COMPANIES TOGETHER TO MANUFACTURING INDUSTRY ROSE DURING THE QUARTER BY 3.1 PER CENT, WHILE LOANS TO THE BUILDING AND CONSTRUCTION SECTOR WERE UP BY 10.7 PER CENT.
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