XN000022-1980-05-06 — Page 3

DEPOS IT-TAKING COMPANIES:

TUESDAÌ, MAI 6, 1980

DEPOSITS

30 548

29 551 (+3.4%)

LOANS AND ADVANCES IN

HONG KONG

16 742

15 304 (+9.4%)

24 495 (+24.79%)

13 566 (+23.4%)

14 016 (+118.0%)

10 367 (+61.5%)

LOAN/DEPOSIT RATIO

54.8%

51.8%

55.4%

74.0%

AVERAGE LIQUIDITY

RATIO я

44.6%

48.1%

R

R

BANKS AND DEPOSIT- TAKING COMPANIES:

TOTAL CREDIT TO THE ECONOMY

86 302

84 610 (+2.0%)

75 793 (+13.9%)

60 806 (+41.9%)

* THESE FIGURES ARE RECALCULATED TO EXCLUDE BANKS'

LIABILITIES TO, AND CLAIMS ON, DEPOSIT-TAKING COMPANIES.

THE STATUTORY REQUIREMENT FOR DEPOSIT-TAKING COMPANIES TO OBSERVE A MINIMUM LIQUID ASSETS RATIO CAME INTO FORCE ON JANUARY 1, 1980.

MONEY SUPPLY

THE MONEY SUPPLY ON THE NARROWEST DEFINITION, M1 (NOTES AND COINS WITH THE PUBLIC, PLUS DEMAND DEPOSITS, OTHER THAN FROM BANKS AND DEPOSIT-TAKING COMPANIES, WITH LICENSED BANKS) FELL BY 6.2 PER CENT DURING MARCH, AFTER A 2 PER CENT RISE IN FEBRUARY.

THE MARCH OUT-TURN REFLECTED A SHARP SEASONAL FALL IN THE TOTAL OF NOTES AND COINS HELD BY THE PUBLIC, AND ALSO A REDUCTION IN DEMAND DEPOSITS.

M2 (M1 PLUS SAVINGS AND TIME DEPOSITS, OTHER THAN FROM BANKS AND DEPOSIT-TAKING COMPANIES, WITH LICENSED BANKS) FELL BY 2.7 PER CENT, AGAINST A 1.0 PER CENT RISE IN FEBRUARY, REFLECTING A FALL OF 2.4 PER CENT IN ALL DEPOSITS WITH BANKS,

M3 (M2 PLUS PUBLIC DEPOSITS WITH DEPOSIT-TAKING COMPANIES) FELL BY 1,0 PER CENT IN MARCH, AFTER RISING BY 2.6 PER CENT IN FEBRUARY. THE MARCH DECLINE IS THE LARGEST RECORDED FALL IN M3 IN THE 15 MONTHS IN WHICH IT HAS BEEN CALCULATED.

M3 ROSE BY 6.9 PER CENT IN THE FIRST QUARTER OF 1980, WHICH IS A SHARP REDUCTION FROM THE INCREASE OF 9.8 PER CENT RECORDED IN THE LAST QUARTER OF 1979.

/CREDIT TO THE ECONOMY