XN000022-1986-07-04 — Page 6

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FRIDAY, JULY 4, 1986

LOANS AND ADVANCES

LOANS AND ADVANCES EXTENDED BY BANKS AND DEPOSIT-TAKING COMPANIES FELL IN MAY, AGAIN DUE TO THE UNUSUAL INCREASE IN LOANS IN APRIL. IN THE THREE MONTHS TO MAY, HOWEVER, THESE LOANS GREW BY 3 PER CENT. OVER THE PAST 12 MONTHS, THE GROWTH RATE WAS 7.7 PER CENT.

IN THE THREE MONTHS TO MAY, LOANS DENOMINATED IN HONG KONG DOLLARS GREW BY 2.4 PER CENT WHILE LOANS DENOMINATED IN FOREIGN CURRENCIES GREW BY 3.6 PER CENT.

WITHIN THE TOTAL, LOANS TO FINANCE THE VISIBLE TRADE OF HONG KONG FELL BY 1.7 PER CENT AFTER INCREASING BY 2.4 PER CENT IN MARCH AND 5.6 PER CENT IN APRIL. OTHER LOANS FOR USE IN HONG KONG ALSO FELL AS LOANS TO APPLICANTS FOR CATHAY PACIFIC SHARES WERE REPAID.

IN THE THREE MONTHS TO MAY, HOWEVER, LOANS FOR USE IN HONG KONG GREW BY 1.4 PER CENT. OVER THE LAST 12 MONTHS, THEY GREW BY 7.2 PER CENT.

LIQUIDITY RATIOS

THE AVERAGE LIQUIDITY RATIO (AS DEFINED IN S. 18 OF THE BANKING ORDINANCE) FOR ALL BANKS INCREASED TO 54.3 PER CENT IN MAY FROM 52.9 PER CENT IN APRIL. THE AVERAGE LIQUIDITY RATIO FOR ALL DEPOSIT-TAKING COMPANIES (AS DEFINED IN S. 24A OF THE DEPOSIT- TAKING COMPANIES ORDINANCE) INCREASED TO 41.6 PER CENT IN MAY FROM 40.2 PER CENT IN APRIL.

NUMBER OF REPORTING INSTITUTIONS

THE NUMBER OF REPORTING LICENSED BANKS INCREASED BY 1 TO 150, THE NUMBER OF LICENSED DEPOSIT-TAKING COMPANIES REMAINED UNCHANGED AT 36. THE NUMBER OF REPORTING REGISTERED DEPOSIT-TAKING COMPANIES DECREASED BY 2 TO 269.

/MONETARY