XN000022-1980-03-06 — Page 3

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THURSDAY, MARCH 6, 1980

CREDIT TO THE ECONOMY

BANK LOANS IN HONG KONG ROSE BY 6.4 PER CENT ($4 BILLIONS) IN JANUARY, AGAINST A 6.1 PER CENT INCREASE IN DECEMBER. THE JANUARY INCREASE INCLUDES A RISE OF $2.1 BILLIONS IN DRAWINGS ON OVERDRAFT FACILITIES PART AT LEAST OF THESE DRAWINGS REFLECTS ROUND-TRIPPING IN THE MONTH.

LOANS IN HONG KONG BY DEPOSIT-TAKING COMPANIES ROSE BY 7.3 PER CENT IN JANUARY, AS COMPARED WITH 3.7 PER CENT IN DECEMBER,

TOTAL LOANS IN HONG KONG ROSE IN JANUARY BY 6.6 PER CENT, A LITTLE UP ON THE DECEMBER RISE OF 5.7 PER CENT.

LOANS ABROAD

THE TOTAL OF LOANS ABROAD FELL IN JANUARY, WITH BANK LOANS DOWN BY $73 MILLIONS TO $20 705 MILLIONS, AND LOANS BY DTCS DECLINING BY $1 588 MILLIONS TO $23 190 MILLIONS.

BALANCE SHEET RATIOS

THE AVERAGE LIQUIDITY RATIO FOR ALL BANKS WAS 53.6 PER CENT IN JANUARY, AGAINST 48.0 PER CENT IN DECEMBER. THIS INCREASE IS DISTORTED BY THE AMENDMENT, WITH EFFECT FROM JANUARY 1, 1980, OF THE LIST OF SPECIFIED LIQUID ASSETS FOR BANKS AND THE DEFINITION OF DEPOSIT LIABILITIES FOR BANKS BOTH AMENDMENTS TAKE ACCOUNT OF THE CHANGING RELATIONSHIP BETWEEN BANKS AND DEPOSIT- TAKING COMPANIES. BANKS' LOAN/DEPOSIT RATIOS ROSE TO 94.5 PER CENT IN JANUARY, REFLECTING THE DEMAND FOR BANK CREDIT IN THE MONTH.

THE AVERAGE LIQUIDITY RATIO FOR ALL DEPOSIT-TAKING COMPANIES WAS 49.0 PER CENT IN JANUARY. THE STATUTORY REQUIREMENT FOR THESE COMPANIES TO OBSERVE A MINIMUM LIQUID ASSETS RATIO CAME INTO FORCE ON JANUARY 1, 1980, SO NO COMPARISONS WITH PREVIOUS MONTHS ARE AVAILABLE. THE LOAN/DEPOSIT RATIO FOR ALL DTCS FELL IN JANUARY TO 52.7 PER CENT, FROM 55.4 PER CENT, REFLECTING THE VERY SHARP RISE IN THEIR DEPOSITS.

NUMBER OF REPORTING INSTITUTIONS

THE NUMBER OF REPORTING BANKS ROSE FROM 105 TO 106 AT THE END OF JANUARY 1980. THREE MORE DEPOSIT-TAKING COMPANIES BEGAN TO REPORT DURING THE MONTH, BRINGING THEIR TOTAL TO 272.

THE DETAILED FIGURES FOR JANUARY 1980, AND COMPARISONS WITH EARLIER MONTHS, ARE SET OUT IN THE FOLLOWING TABLE. THE COMPARISONS WITH JANUARY 1979 ARE DISTORTED BY THE EARLIER DATE OF THE LUNAR NEW YEAR IN THAT YEAR (28 - 31 JANUARY).

FIGURES FOR .....