XN000022-1991-05-06 — Page 8

MONDAY, MAY 6, 1991

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OF THESE, LOANS TO THE BUILDING, CONSTRUCTION AND PROPERTY DEVELOPMENT SECTOR INCREASED BY 1.9%, FOLLOWING AN INCREASE OF 2.9% EACH IN THE PREVIOUS TWO QUARTERS. OVER THE YEAR, THESE LOANS INCREASED BY 8.9%.

PROPERTY,

LOANS TO INDIVIDUALS FOR THE PURCHASE OF RESIDENTIAL OTHER THAN FLATS IN THE HOME OWNERSHIP SCHEME, GREW BY 7.2%, AFTER INCREASES OF 5.3% AND 10.3% RESPECTIVELY IN THE PRECEDING TWO QUARTERS. OVER THE YEAR, THESE LOANS GREW BY 31.9%..

LOANS TO FINANCE WHOLESALE AND RETAIL TRADE DECREASED BY 1.7%, AFTER INCREASES OF 1.4% AND 5.7% RECORDED IN THE THIRD AND FOURTH QUARTERS OF 1990 RESPECTIVELY OVER THE YEAR, THE LOANS GREW BY 12.3%.

LOANS

+

AUTHORISED

TO FINANCIAL CONCERNS, OTHER THAN INSTITUTIONS, ROSE BY 6.5%, FOLLOWING INCREASES OF 5.5% AND 5.8% IN THE PREVIOUS TWO QUARTERS. OVER THE YEAR, THOSE LOANS GREW BY 23.3%.

AFTER A

LOANS FOR USE IN THE MANUFACTURING SECTOR ROSE BY 5.2%, DECLINE OF 0.3% IN THE THIRD QUARTER AND AN INCREASE OF 0.1% IN THE FOURTH QUARTER OF 1990. OVER THE YEAR, THESE LOANS GREW BY 7.9%.

NUMBER OF REPORTING INSTITUTIONS

THE NUMBERS OF REPORTING LICENSED BANKS AND RESTRICTED LICENCE BANKS REMAINED UNCHANGED AT 165 AND 45 RESPECTIVELY. THAT OF DEPOSIT- TAKING COMPANIES DECLINED BY 14 TO 170, AS SOME COMPANIES INACTIVE IN DEPOSIT-TAKING BUSINESS VOLUNTARILY REVOKED THEIR REGISTRATION IN MARCH WHEN THE GRACE PERIOD FOR MEETING THE NEW MINIMUM PAID-UP CAPITAL REQUIREMENT ELAPSED.

NOTES:

(1) BEFORE FEBRUARY 1, 1990, "RESTRICTED LICENCE BANKS" AND "DEPOSIT-TAKING COMPANIES" WERE KNOWN AS "LICENSED DEPOSIT- TAKING COMPANIES" AND "REGISTERED DEPOSIT-TAKING COMPANIES" RESPECTIVELY.

(2)

IN THE TEXT ABOVE, TOTAL HIK$ DEPOSITS, HK$ TIME DEPOSITS, HK$M2 AND HK$M3 HAVE BEEN ADJUSTED TO INCLUDE SWAP DEPOSITS. TOTAL FOREIGN CURRENCY DEPOSITS AND US$ DEPOSITS HAVE BEEN ADJUSTED TO EXCLUDE SWAP DEPOSITS.

"SWAP DEPOSITS" ARE DEPOSITS INVOLVING CUSTOMERS BUYING FOREIGN CURRENCIES (MOSTLY U.S. DOLLARS) IN THE SPOT MARKET AND PLACING THEM AS DEPOSITS WITH AUTHORISED INSTITUTIONS, WHILE AT THE SAME TIME ENTERING INTO A CONTRACT TO SELL SUCH FOREIGN CURRENCIES (PRINCIPAL PLUS INTEREST) FORWARD IN LINE WITH THE MATURITY OF SUCH DEPOSITS. FOR MOST ANALYTICAL PURPOSES, THEY SHOULD BE REGARDED AS HONG KONG DOLLAR DEPOSITS.

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