FORE IGN ASSETS
THE NET IDENTIFIABLE FOREIGN ASSETS OF ALL BANKS FELL IN OCTOBER BY $722 MILLION, AND THOSE OF DEPOSIT-TAKING COMPANIES FELL BY $1 060 MILLION, INDICATING AN OUTFLOW OF $1 782 MILLION FROM THE HONG KONG MONETARY SECTOR (BANKS AND DEPOSIT-TAKING COMPANIES) DURING THE MONTH, AFTER AN OUTFLOW OF $792 MILLION IN SEPTEMBER.
BALANCE SHEET RATIOS
THE AVERAGE LIQUIDITY RATIO FOR ALL BANKS IN HONG KONG FELL IN OCTOBER TO 46.8 PER CENT FROM 47.8 PER CENT IN SEPTEMBER. THE LOAN/DEPOSIT RATIO, HOWEVER, ROSE FURTHER TO 97.6 PER CENT AT THE END OF OCTOBER, FROM 92.1 PER CENT AT THE END OF SEPTEMBER, REFLECTING THE RAPID EXPANSION IN BANK LOANS DURING THE MONTH.
THE AVERAGE LIQUIDITY RATIO FOR ALL DEPOSIT-TAKING COMPANIES ROSE IN OCTOBER TO 47.9 PER CENT FROM 47.5 PER CENT IN SEPTEMBER. THE LOAN/DEPOSIT RATIO HOWEVER DECLINED TO 76.1 PER CENT AT THE END OF OCTOBER FROM 79.1 PER CENT AT THE END OF SEPTEMBER, AS DEPOSITS WITH DEPOSIT-TAKING COMPANIES INCREASED SHARPLY DURING THE MONTH.
NUMBER OF REPORTING INSTITUTIONS
THE NUMBER OF REPORTING BANKS WAS UNCHANGED IN OCTOBER AT 113. ONE MORE DEPOSIT-TAKING COMPANY BEGAN TO REPORT DURING THE MONTH, BRINGING THE IR TOTAL TO 298.
TEXTILE AGREEMENT WITH AUSTRIA
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THE CURRENT TEXTILE AGREEMENT BETWEEN AUSTRIA AND HONG KONG IS DUE TO EXPIRE ON JANUARY 31, 1981. IT PROVIDES FOR EXPORT RESTRAINT ON THREE ITEMS OF CLOTHING.
FOLLOWING CONSULTATIONS IN LONDON BETWEEN AUSTRIA AND HONG KONG, AN AD REFERENDUM AGREEMENT WAS REACHED ON NOVEMBER 29 WHICH PROVIDES FOR CONTINUATION OF THE PRESENT AGREEMENT, WITH CERTAIN CHANGES.
IN THE NEW AGREEMENT, TWO ITEMS CURRENTLY UNDER EXPORT AUTHOR ISATION WILL BE SUBJECT TO QUOTA RESTRAINT FOR A 14-MONTH PERIOD FROM DECEMBER 1, 1980. THEY ARE KNITTED DRESSES OF SYNTHETIC FIBRES, AND WOVEN DRESSES OF COTTON OR MAN-MADE FIBRES, SKIRTS OF COTTON.
RESTRAINT WILL CONTINUE TO BE EXERCISED IN RESPECT OF THE THREE ITEMS PRESENTLY UNDER EXPORT RESTRAINT, NAMELY, WOVEN SHIRTS, WOVEN BLOUSES AND WOVEN TROUSERS. THE RESTRAINT WILL BE FOR A PERIOD OF 12 MONTHS COMMENCING FEBRUARY 1, 1981.
THE TEXTILE ADVISORY BOARD HAS BEEN CONSULTED AND HAS ADVISED THAT HONG KONG SHOULD ACCEPT THE AGREEMENT. DETAILS AND THE RULES FOR IMPLEMENTATION WILL BE PUBLISHED SHORTLY.
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