XN000022-1994-08-31 — Page 8

LOANS AND ADVANCES

7

·

WEDNESDAY, AUGUST 31, 1994

CONTINUED то THE GROWTH OF HONG KONG DOLLAR DEPOSITS (+0.9%)

THE HONG KONG DOLLAR OUTPACE THAT OF HONG KONG DOLLAR LOANS (+0.5%).

POINT TO RATIO FELL FURTHER BY HALF OF A PERCENTAGE LOAN-TO-DEPOSIT 113.0% IN JULY, THE LOWEST LEVEL RECORDED SINCE MARCH 1994, REFLECTING MORE PRUDENT LENDING POLICY BY AUTHORISED INSTITUTIONS.

IT

FOREIGN CURRENCY LOANS DECREASED BY 0.3% DURING THE MONTH. GREW BY 10.8% OVER A YEAR EARLIER.

TOTAL

OUTSTANDING

LOANS AND ADVANCES EXTENDED

BY

AUTHORISED

SLOWED DOWN

INSTITUTIONS REMAINED UNCHANGED IN JULY. ANALYSED BY USAGE, THE RAPID

OF LOANS TO FINANCE VISIBLE TRADE SINCE APRIL EXPANSION NOTABLY IN JULY.

AT

THE GROWTH OF OTHER LOANS FOR USE IN HONG KONG WAS ALSO 0.5%,

ATTRIBUTABLE PARTLY

IN TO THE SLOW DOWN MORTGAGE LOANS.

MODEST

THE GROWTH OF

MONEY SUPPLY

NOTWITHSTANDING A 0.5% RISE IN LEGAL TENDER NOTES AND COINS HELD BY THE PUBLIC, HK$M1 DECLINED BY 2.0% IN JULY, CAUSED MAINLY BY THE FALL IN DEMAND

(-3.5%). YEAR-ON-YEAR, STABILISED AT 6.1%, A RATE CLOSE TO THAT RECORDED IN JUNE.

DEPOSITS

EXPANSION

ITS

GROWTH

WITH THE SLOW DOWN IN CREDIT

BY AUTHORISED EACH IN INSTITUTIONS, HK$M2 AND HK$M3 SHOWED SUBDUED GROWTH OF 1.0%

HK$M3 HAVE BEEN JULY. THE YEAR-ON-YEAR GROWTH RATES OF HK$M2 AND FAIRLY STABLE, MOVING AT AROUND 20% TO 26% IN THE PAST FIVE MONTHS.

EXPECTED TO PUT THE LATEST INTEREST RATE HIKE IN AUGUST IS

MAY FURTHER RESTRAINING PRESSURE ON BORROWING DEMANDS, WHICH IN TURN

EXPANSION IN HONG KONG DOLLAR MONEY SUPPLY IN RESTRAIN

THE COMING

MONTHS.

THAN

THEIR

DOLLAR

12.6%

OWING TO THE DECLINE IN FOREIGN CURRENCY DEPOSITS, TOTAL M2 AND TOTAL M3 HAD

HONG KONG MUCH SLOWER GROWTH COUNTERPARTS. AT

BY 11.8% AND THE END OF JULY, THEY GREW RESPECTIVELY OVER THE SAME MONTH LAST YEAR.

NOTE TO EDITORS:

FURTHER FOR

PUBLICATIONS

878 8261.

SECTION,

PRESS ENQUIRIES, PLEASE HONG KONG MONETARY

CONTACT THE PRESS AND ON AUTHORITY

TELEPHONE

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