XN000022-1980-01-07 — Page 9

MONDAY, JANUARY 7, 1980

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CREDIT TO THE ECONOMY

BANK LOANS IN HONG KONG (REVISED) ROSE IN NOVEMBER BY 1.5 PER CENT DOWN FROM 2.1 PER CENT IN OCTOBER, TO A LEVEL 26.3 PER CENT ABOVE THE END-DECEMBER 1978 FIGURE (28.7 PER CENT ANNUALISED).

DEPOSIT-TAKING COMPANY LOANS IN HONG KONG ROSE IN NOVEMBER

BY A SUBSTANTIAL 6.5 PER CENT, SHARPLY UP FROM 2.6 PER CENT IN OCTOBER, AND REACHED A LEVEL 29.1 PER CENT UP ON THE END- DECEMBER 1978 FIGURE (31.7 PER CENT ANNUAL ISED).

TOTAL CREDIT TO THE ECONOMY ROSE IN NOVEMBER BY 2.4 PER CENT,

LITTLE CHANGED FROM OCTOBER'S 2.2 PER CENT RISE, TO REACH A LEVEL OF 26.8 PER CENT ABOVE END-DECEMBER 1978 (29.2 PER CENT ANNUALISED). WHILST THE ANNUALISED GROWTH RATE IS STILL A CAUSE OF CONCERN, IT IS AT LEAST BROADLY CONSISTENT WITH THE GROWTH OF THE ECONOMY IN CURRENT PRICE TERMS.

LOANS ABROAD

THE TOTAL OF LOANS ABROAD ROSE VERY SHARPLY, WITH BANK LOANS ABROAD UP BY $548 MILLIONS TO $20 260 MILLIONS AND DEPOSIT-TAKING COMPANIES' LOANS ABROAD UP BY $1 459 MILLIONS TO $24 399 MILLIONS.

BALANCE SHEET RATIOS

THE AVERAGE LIQUIDITY RATIO FOR ALL BANKS DECLINED A LITTLE TO 48.9 PER CENT IN NOVEMBER, HAVING BEEN AT A VERY HIGH LEVEL OF 50.1 PER CENT IN OCTOBER. BANKS' LOAN/DEPOSIT RATIOS (REVISED) DECLINED FROM 90.2 PER CENT TO 88.8 PER CENT.

THE LOAN/DEPOSIT RATIO FOR ALL DEPOSIT-TAKING COMPANIES ROSE (REFLECTING THE SHARP RISE IN THE IR ADVANCES) FROM 54.0 PER CENT TO 57.2 PER CENT.

NUMBER OF REPORTING INSTITUTIONS

THE NUMBER OF REPORTING BANKS WAS UNCHANGED AT 105 AT THE END OF NOVEMBER. ONE MORE DEPOSIT-TAKING COMPANY BEGAN TO REPORT DURING THE MONTH, BRINGING THE TOTAL OF THESE COMPANIES TO 265.

THE FOLLOWING