LOANS AND ADVANCES
7
·
WEDNESDAY, AUGUST 31, 1994
CONTINUED то THE GROWTH OF HONG KONG DOLLAR DEPOSITS (+0.9%)
THE HONG KONG DOLLAR OUTPACE THAT OF HONG KONG DOLLAR LOANS (+0.5%).
POINT TO RATIO FELL FURTHER BY HALF OF A PERCENTAGE LOAN-TO-DEPOSIT 113.0% IN JULY, THE LOWEST LEVEL RECORDED SINCE MARCH 1994, REFLECTING MORE PRUDENT LENDING POLICY BY AUTHORISED INSTITUTIONS.
IT
FOREIGN CURRENCY LOANS DECREASED BY 0.3% DURING THE MONTH. GREW BY 10.8% OVER A YEAR EARLIER.
TOTAL
OUTSTANDING
LOANS AND ADVANCES EXTENDED
BY
AUTHORISED
SLOWED DOWN
INSTITUTIONS REMAINED UNCHANGED IN JULY. ANALYSED BY USAGE, THE RAPID
OF LOANS TO FINANCE VISIBLE TRADE SINCE APRIL EXPANSION NOTABLY IN JULY.
AT
THE GROWTH OF OTHER LOANS FOR USE IN HONG KONG WAS ALSO 0.5%,
ATTRIBUTABLE PARTLY
IN TO THE SLOW DOWN MORTGAGE LOANS.
MODEST
THE GROWTH OF
MONEY SUPPLY
NOTWITHSTANDING A 0.5% RISE IN LEGAL TENDER NOTES AND COINS HELD BY THE PUBLIC, HK$M1 DECLINED BY 2.0% IN JULY, CAUSED MAINLY BY THE FALL IN DEMAND
(-3.5%). YEAR-ON-YEAR, STABILISED AT 6.1%, A RATE CLOSE TO THAT RECORDED IN JUNE.
DEPOSITS
EXPANSION
ITS
GROWTH
WITH THE SLOW DOWN IN CREDIT
BY AUTHORISED EACH IN INSTITUTIONS, HK$M2 AND HK$M3 SHOWED SUBDUED GROWTH OF 1.0%
HK$M3 HAVE BEEN JULY. THE YEAR-ON-YEAR GROWTH RATES OF HK$M2 AND FAIRLY STABLE, MOVING AT AROUND 20% TO 26% IN THE PAST FIVE MONTHS.
EXPECTED TO PUT THE LATEST INTEREST RATE HIKE IN AUGUST IS
MAY FURTHER RESTRAINING PRESSURE ON BORROWING DEMANDS, WHICH IN TURN
EXPANSION IN HONG KONG DOLLAR MONEY SUPPLY IN RESTRAIN
THE COMING
MONTHS.
THAN
THEIR
DOLLAR
12.6%
OWING TO THE DECLINE IN FOREIGN CURRENCY DEPOSITS, TOTAL M2 AND TOTAL M3 HAD
HONG KONG MUCH SLOWER GROWTH COUNTERPARTS. AT
BY 11.8% AND THE END OF JULY, THEY GREW RESPECTIVELY OVER THE SAME MONTH LAST YEAR.
NOTE TO EDITORS:
FURTHER FOR
PUBLICATIONS
878 8261.
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