XN000022-1983-01-06 — Page 8

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TEURSE Y, JANUARY 6, 19:3

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FOREIGN CURRENCY ASSETS AND LIABILITIES

SPOT FOREIGN CURRENCY LIABILITIES OF THE MONETARY SECTOR DECREASED IN NOVEMBER BY $7.7 BILLION TO $554.9 BILLION. SPOT FOREIGN CURRENCY ASSETS ALSO DECREASED BY $9.5 BILLION TO $538.0 BILLION. AS THE VALUES OF FOREIGN CURRENCY ASSETS AND LIABILITIES (MOSTLY DENOMINATED IN US DOLLARS) ARE REPORTED IN HONG KONG DOLLARS, THE FIGURES ARE AFFECTED BY EXCHANGE RATE CHANGES, ALLOWING FOR THE 3.0 PER CENT APPRECIATION OF THE HONG KONG DOLLAR AGAINST THE US DOLLAR IN NOVEMBER, FOREIGN CURRENCY ASSETS AND LIABILITIES OF THE MONETARY SECTOR IN FACT INCREASED SUBSTANTIALLY DURING THE MONTH. NET SPOT FOREIGN CURRENCY LIABILITIES OF THE MONETARY SECTOR INCREASED BY $1.8 BILLION TO $16.9 BILLION. BANKS HAD NET LIABILITIES OF $9.7 BILLION AND DEPOSIT-TAKING COMPANIES HAD NET LIABILITIES OF $8.2 BILLION.

STATISTICS COLLECTED FOR PRUDENTIAL SUPERVISION PURPOSES BY THE COMMISSIONER OF BANKING AND OF DEPOSIT-TAKING COMPANIES SHOW THAT THE MONETARY SECTOR HAS MORE THAN ADEQUATE COVER FOR THE IR NET SPOT FOREIGN CURRENCY LIABILITIES.

TABLE 2 (ALSO ATTACHED) SHOWS THAT NET SPOT FOREIGN CURRENCY LIABILITIES WERE $17.3 BILLION AT THE END OF NOVEMBER (THIS FIGURE DIFFERS SLIGHTLY FROM THAT IN THE PRECEDING PARAGRAPH BECAUSE OF MINOR DIFFERENCES OF DEFINITION) AND NET FORWARD FOREIGN CURRENCY ASSETS WERE $36.6 BILLION.

BALANCE SHEET RATIOS

THE AVERAGE LIQUIDITY RATIO (AS DEFINED IN S.18 OF THE BANKING ORDINANCE) FOR ALL BANKS IN HONG KONG IN NOVEMBER WAS 47.5 PER CENT, THE SAME AS IN OCTOBER. THE RATIO OF THEIR LOANS FOR USE IN HONG KONG TO THEIR DEPOSITS ROSE TO 73.2 PER CENT IN NOVEMBER FROM 72.1 PER CENT IN OCTOBER.

THE AVERAGE LIQUIDITY RATIO (AS DEFINED IN $.24A OF THE DEPOSIT-TAKING COMPANIES ORDINANCE) FOR ALL DEPOSIT-TAKING COMPANIES INCREASED TO 57.7 PER CENT IN NOVEMBER FROM 56.5 PER CENT IN OCTOBER. THE RATIO OF THEIR LOANS FOR USE IN HONG KONG TO THE IR DEPOSITS FELL MARGINALLY TO 111.6 PER CENT IN NOVEMBER FROM 112.8 PER CENT IN OCTOBER.

NUMBER OF REPORTING INSTITUTIONS

THE NUMBER OF REPORTING LICENSED BANKS INCREASED BY 1 TO 126. THE NUMBER OF LICENSED DEPOSIT-TAKING COMPANIES ALSO INCREASED BY 1 TO 17, WHILE THE NUMBER OF REGISTERED DEPOSIT- TAKING COMPANIES DECREASED BY 1 TO 344.

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