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Within HK dollar deposits, demand deposits dropped by 2.5% in February, as the level of deposits in January was boosted by the Chinese New Year payrolls and bonuses.
HK dollar savings deposits and time deposits increased by 5.2% and 0.5% respectively during the month, compared with the increases of 0.2% and 0.5% in January. Foreign currency swap deposits fell by a further 3% in February, making a cumulative 55.4% reduction since the peak of November 1994.
The foreign currency deposits grew by 1.3% during February. This was attributable to a 2.1% growth in US dollar deposits and a 0.5% increase in non-US dollar foreign currency deposits.
Loans and Advances
Total loans and advances rose by 2.0% in February, after a 1.4% decrease in January. This was mainly due to a rebound in the loans for use outside Hong Kong by 2.7%. Loans for use in Hong Kong also rose by 1.1% in February.
Analysed by currency, HK dollar loans and foreign currency loans rose by 1.1% and 2.5% respectively during the month. As HK dollar deposits grew more rapidly than HK dollar loans, the HK dollar loan-to-deposit ratio receded to 106.3% at end-February from 106.7% at end-January.
Money Supply
Fuelled by the demand for cash for the Chinese New Year, currency held by public surged by 13.2%. This offset the fall in HK dollar demand deposits, and HKSMI increased by 3.8% during the month. HK$M2 and HK$M3 rose by 2.2% and 2.1% respectively.