XN000022-1979-10-03 — Page 4

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WEDNESDAY, OCTOBER 3, 1979

CREDIT TO THE ECONOMY

LENDING IN HONG KONG BY BANKS AND DEPOSIT-TAKING COMPANIES TOGETHER ROSE BY 0.8 PER CENT IN AUGUST, AGAINST 2.9 PER CENT IN JULY IN THE LAST THREE MONTHS THIS INDICATOR, WHICH IS THE MOST COMPREHENSIVE MEASURE OF CREDIT MADE AVAILABLE TO THE ECONOMY, HAS RISEN AT AN ANNUAL RATE OF 24 PER CENT, RATHER LOWER THAN THE FORECAST GROWTH RATE OF THE ECONOMY.

BANK ING FIGURES

BANK LOANS AND ADVANCES IN HONG KONG ROSE BY 0.7 PER CENT IN AUGUST, AGAINST 3.1 PER CENT IN JULY. THIS IS THE LOWEST MONTHLY INCREASE SINCE AUGUST 1977. IN THE LAST THREE MONTHS BANK LENDING HAS RISEN BY 6.7 PER CENT, WHICH IS EQUIVALENT TO AN ANNUAL GROWTH RATE OF 29.6 PER CENT - MUCH LOWER THAN THE ACTUAL INCREASE OF 44.3 PER CENT BETWEEN AUGUST 1977 AND AUGUST 1978.

BANK LENDING OVERSEAS FELL BY $194 MILLION TO $20 067 MILLION IN AUGUST, AFTER RISING SHARPLY IN THE PREVIOUS MONTH.

BANKS' AVERAGE LIQUIDITY RATIOS FELL TO 48.7 PER CENT IN AUGUST (49.2 PER CENT IN JULY), AND THE RATIO OF LOANS IN HONG KONG TO DEPOSITS ALSO FELL, FROM 84.6 PER CENT TO 83.8 PER CENT.

DEPOSIT-TAKING COMPANY FIGURES

LOANS AND ADVANCES IN HONG KONG BY DEPOSIT-TAKING COMPANIES ROSE BY 2.7 PER CENT AGAINST 2.4 PER CENT IN JULY.

THE DETAILED FIGURES, AND COMPARISONS WITH EARLIER MONTHS ARE AS FOLLOWS:

IN $MILLION

INCREASE OVER EARLIER MONTHS

AUGUST 1979

JULY 1979

MAY 1979

Mi

25 169

400 (1.6%)

M2

83 939

M3

88 464

+1 403 (1.7%)

+1 587 (1.8%)

+1 732 (7.4%)

+5 319 (6.8%)

+4 836 (5,8%)

AUGUST 1978

+ 3 945 (18.6%)

+14 850 (21.5%)

/BANKS.