XN000022-1981-11-07 — Page 5

SATURDAY, NOVEMBER 7, 1981

LOANS IN HONG KONG

ORIGINAL SERIES

THE GROWTH RATE OF TOTAL LOANS AND ADVANCES IN HONG KONG IN SEPTEMBER, AT 3.4 PER CENT, WAS UNCHANGED FROM THAT IN THE PREVIOUS MONTH. IN THE THIRD QUARTER, TOTAL LOANS AND ADVANCES IN HONG KONG ROSE BY 6.2 PER CENT, MUCH REDUCED FROM AN INCREASE OF 12.8 PER CENT IN THE SECOND QUARTER.

UNLIKE THE NEW SERIES THESE FIGURES DO NOT IDENTIFY THE PLACE WHERE THE LOANS ARE TO BE USED, BECAUSE A BORROWER IN HONG KONG MAY VERY WELL BORROW IN HONG KONG FOR USE OUTSIDE HONG KONG.

FORE IGN ASSETS

THE NET IDENTIFIABLE FOREIGN ASSETS OF ALL BANKS INCREASED IN SEPTEMBER BY $1 320 MN. AND THOSE OF DTCS BY $1 012 MN., INDICATING A NET INFLOW OF FUNDS INTO THE HONG KONG MONETARY SECTOR OF $2 332 MN., AFTER A NET INFLOW OF $1 770 MN. IN THE PREVIOUS MONTH. PART OF THE INCREASE IN REPORTED FOREIGN ASSETS REFLECTED THE DEPRECIATION OF THE HONG KONG DOLLAR IN SEPTEMBER AGAINST THE US$ AND OTHER CURRENCIES, AND A CONSEQUENT INCREASE IN THE HONG KONG DOLLAR EQUIVALENT OF ASSETS DENOMINATED IN FOREIGN CURRENCIES.

IN THE THIRD QUARTER THE NET INFLOW OF FUNDS INTO HONG KONG AMOUNTED TO $1 840 MN., COMPARED WITH A NET INFLOW OF $3 681 MN. IN THE SECOND QUARTER.

BALANCE SHEET RATIOS

THE AVERAGE LIQUIDITY RATIO FOR ALL BANKS IN HONG KONG ROSE IN SEPTEMBER TO 52.1 PER CENT FROM 50.1 PER CENT IN AUGUST, THOUGH THE LOAN/DEPOSIT RATIO ROSE TO 121.9 PER CENT AT THE END OF SEPTEMBER FROM 120.0 PER CENT AT THE END OF AUGUST.

THE AVERAGE LIQUIDITY RATIO FOR ALL DEPOSIT-TAKING COMPANIES ROSE TO 46.7 PER CENT IN SEPTEMBER FROM 44.6 PER CENT IN AUGUST, THOUGH THE LOAN/DEPOSIT RATIO AT THE END OF SEPTEMBER ROSE TO 72.2 PER CENT FROM 69.7 PER CENT AT THE END OF AUGUST, REFLECTING A REDUCTION IN DEPOSITS WITH DTCS DURING THE MONTH.

NUMBER OF REPORTING INSTITUTIONS

THE NUMBER OF REPORTING BANKS ROSE BY TWO IN SEPTEMBER TO

THE NUMBER OF REPORTING DEPOSIT-TAK ING COMPANIES REMAINED UNCHANGED IN THE MONTH AT 348.

117.