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Within HK$ deposits, demand deposits fell by 2.1% in March, after a 2.5% drop in February. On the other hand, savings and time deposits grew by 1% and 2.2% respectively, continuing the growth of 5.2% and 0.5% in February.
The rise in foreign currency deposits was mainly accounted for by a 1.9% increase in non-US$ foreign currency deposits during the month. US$ deposits grew by a modest 0.3%.
Foreign currency swap deposits abated by a further 3.2% in March. Since it peaked in November 1994, foreign currency swap deposits fell for 16 months running, leading to a cumulative decrease of 56.8%.
Loans and Advances
Total outstanding loans and advances receded by 1.6% in March, reversing the 2% growth in February. The decline was the result of a 3.2% decline in loans for use outside Hong Kong, which outweighed a 0.6% rise in loans for use in Hong Kong. Analysed by currency, HK$ loans rose by 1.2% in the month, while foreign currency loans dropped by 2.9%. As HK$ deposits grew faster than HK$ loans, the HK$ loan- to-deposit ratio slid to 105.9% in March from 106.3% in February.
Quarterly Analysis of Loans for Use in Hong Kong by Major Economic Sector
Loans for use in Hong Kong rose by 3.4% in the March quarter. The rise was broadly based, led by loans for residential mortgages and by loans for building and construction, which rose by 4.2% and 6.5% respectively.
Money Supply
Currency held by the public declined by 7.2% in March, as the level in February was boosted by Chinese New Year. Coupled with the drop in HK$ demand deposits. HKSMI decreased by 4.3%. HK$M2 and HK$M3 increased by 1.2% and 1.1% in the month, having risen by 2.2% and 2.1% respectively in February.