WEDNESDAY, JANUARY 30, 1980
25
M2 WHICH IS DEFINED AS M1 PLUS SAVINGS AND TIME DEPOSITS (OTHER THAN FROM BANKS AND DTCS) WITH LICENSED BANKS, ROSE IN DECEMBER BY 3.2 PER CENT, ALMOST UNCHANGED FROM THE NOVEMBER INCREASE OF 3.1 PER CENT OVER 1979 AS A WHOLE IT ROSE BY 13.2 PER CENT,
M3 CONSISTS OF M2 PLUS PUBLIC DEPOSITS WITH DEPOSIT-TAKING COMPANIES. IT ROSE IN DECEMBER BY 4.1 PER CENT (REFLECTING AN INCREASE OF 7.1 PER CENT IN THE PUBLIC'S DEPOSITS WITH DTCS), UP FROM 2.4 PER CENT IN NOVEMBER. OVER 1979 M3 ROSE BY 29.7 PER CENT.
CREDIT TO THE ECONOMY
BANK LOANS IN HONG KONG (TO CUSTOMERS OTHER THAN DEPOSIT- TAKING COMPANIES) ROSE BY 6.1 PER CENT IN DECEMBER, UP FROM A 1.5 PER CENT INCREASE IN NOVEMBER, DURING THE YEAR BANK LOANS ROSE BY 34.0 PER CENT, SUBSTANTIALLY LESS THAN IN 1978, WHEN LOANS TO CUSTOMERS OTHER THAN DEPOSIT-TAKING COMPANIES ARE ESTIMATED TO HAVE RISEN BY 39 PER CENT, THOUGH EXACT FIGURES ARE NOT AVAILABLE.
LOANS IN HONG KONG BY DEPOSIT-TAKING COMPANIES ROSE IN DECEMBER BY 3.7 PER CENT, WELL DOWN FROM NOVEMBER'S 6.5 PER CENT INCREASE. DURING 1979 LOANS BY DEPOSIT-TAKING COMPANIES ROSE BY 33.8 PER CENT (NO FIGURES ARE AVAILABLE FOR 1978).
TOTAL CREDIT TO THE ECONOMY ROSE IN DECEMBER BY 5.7 PER CENT, WHICH WAS UP FROM THE 2.4 PER CENT INCREASE IN NOVEMBER. TOTAL CREDIT ROSE IN 1979 BY 34.0 PER CENT. AGAIN NO FIGURES ARE AVAILABLE FOR 1978 FOR COMPARISON.
LOANS ABROAD
THE TOTAL OF LOANS ABROAD CONTINUED TO RISE, WITH BANK LOANS INCREASING BY $518 MN TO $20 778 MN, AND DTC LOANS ABROAD UP BY $379 MN TO $24 778 MN.
BALANCE SHEET RATIOS
THE AVERAGE LIQUIDITY RATIO FOR ALL BANKS DECLINED FURTHER IN DECEMBER TO 48.0 PER CENT, DOWN FROM 48.9 PER CENT IN NOVEMBER, TO REACH ITS LOWEST LEVEL FOR NINE MONTHS. BANKS' LOAN/DEPOSIT RATIOS ROSE IN DECEMBER TO 91.5 PER CENT THE INCREASE FROM THE NOVEMBER LEVEL OF 88.8 PER CENT REFLECTS THE INCREASE IN BANK LOANS DURING THE MONTH. THE LOAN/DEPOSIT RATIO FOR ALL DEPOSIT-TAKING COMPANIES FELL BACK IN DECEMBER TO 55.4 PER CENT (57.2 PER CENT IN NOVEMBER), AS A RESULT OF THE 7 PER CENT INCREASE IN DTCS' DEPOSITS IN DECEMBER.
/ANALYSIS OF