XN000022-1980-10-03 — Page 3

FRIDAY, OCTOBER 3, 1980

2

LOAN/DEPOSIT RATIO

79.4%

80.3%

70.1%

56.4%

AVERAGE LIQUIDITY

RATIO +

46.4%

46.2%

43.4%

BANKS AND DEPOSIT-

TAKING COMPANIES -

TOTAL CREDIT TO

THE ECONOMY

*

101 548

97 709 91 607 (+3.9%) (+10.9%)

THESE FIGURES ARE RECALCULATED TO EXCLUDE BANKS' LIABILITIES TO, AND CLAIMS ON, DEPOSIT-TAKING COMPANIES.

66 633 (+52.4%)

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) ROSE BY 3.1 PER CENT IN AUGUST, AFTER AN INCREASE OF 2.6 PER CENT IN JULY.

M2 (M1 PLUS SAVINGS AND TIME DEPOSITS, OTHER THAN FROM BANKS AND DEPOSIT-TAKING COMPANIES, WITH LICENSED BANKS) ROSE BY 2.6 PER CENT IN AUGUST, SLIGHTLY UP FROM A 2.4 PER CENT RISE IN JULY.

M3 (M2 PLUS PUBLIC DEPOSITS WITH DEPOSIT-TAKING COMPANIES) ROSE BY 3.1 PER CENT IN AUGUST, AFTER RISING BY 1.1 PER CENT IN JULY. IN THE LAST THREE MONTHS, M3 ROSE BY 11.0 PER CENT.

CREDIT TO THE ECONOMY

TOTAL LOANS IN HONG KONG GREW BY 3.9 PER CENT IN AUGUST UP FROM A 1.2 PER CENT RISE IN JULY, IN THE LAST THREE MONTHS, TOTAL LOANS IN HONG KONG ROSE BY 10.9 PER CENT, UP FROM AN INCREASE OF 8.3 PER CENT IN THE PREVIOUS THREE MONTHS.

BANK LOANS IN HONG KONG INCREASED BY 4.1 PER CENT IN

AUGUST,

WELL UP FROM A 0.2 PER CENT RISE IN JULY. LOANS IN HONG KONG BY DEPOSIT-TAKING COMPANIES EXPANDED BY 3.3 PER CENT IN AUGUST, DOWN FROM THE JULY INCREASE OF 4.2 PER CENT. THESE MOVEMENTS PARTLY REFLECTED A FIRMING UP IN MONEY MARKET RATES FROM THE MIDDLE OF AUGUST.

"FORDIGN

ASI

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