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FRIDAY, JULY 4, 1980
M3 (M2 PLUS PUBLIC DEPOSITS WITH DEPOSIT-TAKING COMPANIES) INCREASED BY 3.6 PER CENT, FOLLOWING A 1.2 PER CENT RISE IN APRIL. IN THE LAST THREE MONTHS M3 ROSE BY 3.8 PER CENT, VERY SHARPLY REDUCED FROM THE RISE OF 12.5 PER CENT IN THE PREVIOUS THREE MONTHS.
CREDIT TO THE ECONOMY
TOTAL LOANS IN HONG KONG ROSE BY 2.2 PER CENT IN MAY, DOWN FROM A 3.8 PER CENT RISE IN APRIL. IN THE LAST 3 MONTHS, TOTAL LOANS IN HONG KONG ROSE BY 8.3 PER CENT, AS COMPARED WITH A RISE OF 17.9 PER CENT IN THE THREE MONTHS TO THE END OF FEBRUARY 1980.
BANK LOANS IN HONG KONG FELL IN MAY BY 2.9 PER CENT, AS COMPARED WITH A RISE OF 3.5 PER CENT IN APRIL. LOANS IN HONG KONG BY DEPOSIT-TAKING COMPANIES, HOWEVER, ROSE IN MAY BY AN EXCEPTIONAL 23.4 PER CENT, AS AGAINST THE APRIL INCREASE OF 5.0 PER CENT.
THESE MOVEMENTS REFLECTED A SHARP FALL IN MONEY MARKET RATES DURING THE MONTH, AND A CONSEQUENTIAL SHIFT OF BORROWERS TO DEPOSIT-TAKING COMPANIES.
FOREIGN ASSETS
THE NET IDENTIFIABLE FOREIGN ASSETS OF ALL BANKS ROSE IN MAY BY $656 MILLION, AND OF ALL DTCS BY $742 MILLION, SO THAT THERE WAS AN INFLOW OF FUNDS INTO THE HONG KONG MONETARY SECTOR OF $1 398 MILLION (BANKS AND DTCS MADE NET PURCHASES OF FOREIGN ASSETS FROM NON-BANK CUSTOMERS OF $1 398 MILLION, AS COMPARED WITH AN OUTFLOW OF $2 378 MILLION (NET SALES OF FOREIGN ASSETS TO CUSTOMERS) IN THE PREVIOUS MONTH.
BALANCE SHEET RATIOS
THE AVERAGE LIQUIDITY RATIO FOR ALL BANKS IN HONG KONG FELL IN MAY TO 48.7 PER CENT FROM 49.6 PER CENT IN APRIL. THE LOAN/DEPOSIT RATIO FELL TO 95.3 PER CENT AT THE END OF MAY, FROM 103.6 PER CENT AT THE END OF APRIL.
THE AVERAGE LIQUIDITY RATIO FOR ALL DTCS ROSE IN MAY TO 43.4 PER CENT FROM 41.9 PER CENT IN APRIL. THE LOAN/DEPOSIT RATIO AT THE END OF MAY ROSE SHARPLY TO 70.1 PER CENT FROM 56.7 PER CENT IN APRIL, REFLECTING THE EXCEPTIONAL GROWTH IN LENDING BY DTCS IN THE MONTH,
NUMBER OF REPORTING INSTITUTIONS
ONE MORE LICENSED BANK BEGAN TO OPERATE IN MAY. BRINGING THE IR TOTAL TO 113. THE NUMBER OF REGISTERED DEPOSIT-TAKING COMPANIES ROSE BY SIX DURING THE MONTH TO 279.
THE DELILED