XN000022-1980-09-04 — Page 4

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THURSDAY, SEPTEMBER 4, 1950

CREDIT TO THE ECONOMY

BANK LOANS IN HONG KONG ROSE BY ONLY 0.2 PER CENT IN JULY, SHARPLY DOWN FROM A 5.2 PER CENT RISE IN JUNE. LOANS IN HONG KONG BY DEPOSIT-TAKING COMPANIES ROSE BY 4.2 PER CENT, DOWN FROM A 6.1 PER CENT INCREASE IN THE PREVIOUS MONTH.

TOTAL LOANS IN HONG KONG ROSE BY 1.2 PER CENT IN JULY, WELL DOWN FROM THE RISE OF 5.4 PER CENT IN JUNE. IN THE LAST THREE MONTHS, TOTAL LOANS IN HONG KONG INCREASED BY 9.0 PER CENT.

FOREIGN ASSETS

THE NET IDENTIFIABLE FOREIGN ASSETS OF ALL BANKS REDUCED IN JULY BY $282 MILLION, WHILE THOSE OF DEPOSIT-TAKING COMPANIES ROSE BY $308 MILLION DURING THE SAME PERIOD, SUGGESTING A SMALL INFLOW OF FUNDS INTO THE HONG KONG MONETARY SECTOR OF $26 MILLION, WHICH WAS MUCH LESS THAN THE INFLOW OF $1 126 MILLION IN JUNE.

BALANCE SHEET RATIOS

THE AVERAGE LIQUIDITY RATIO FOR ALL BANKS IN HONG KONG FELL SLIGHTLY IN JULY TO 49.3 PER CENT FROM 49.4 PER CENT IN JUNE, THE LOAN/DEPOSIT RATIO DECLINED FURTHER TO 89.0 PER CENT AT THE END OF JULY, FROM 91.1 PER CENT AT THE END OF JUNE.

THE AVERAGE LIQUIDITY RATIO FOR ALL DEPOSIT-TAKING COMPANIES ROSE FURTHER IN JULY TO 46.2 PER CENT FROM 44.2 PER CENT IN JUNE. THE LOAN/DEPOSIT RATIO AT THE END OF JULY ROSE TO 80.3 PER CENT FROM 75.1 PER CENT AT THE END OF THE PREVIOUS MONTH, REFLECTING A FURTHER FALL IN DEPOSITS WITH DEPOSIT-TAKING COMPANIES.

NUMBER OF REPORTING INSTITUTIONS

THE NUMBER OF REPORTING BANKS WAS UNCHANGED IN JULY AT 113. THE NUMBER OF REPORTING DEPOSIT-TAKING COMPANIES ROSE BY ANOTHER SEVEN IN THE MONTH TO 290.

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