XN000022-1996-10-31 — Page 9

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Monetary statistics for September

The total deposits rose moderately in September 1996, while total loans and advances fell slightly, according to statistics published today (Thursday) by the Hong Kong Monetary Authority (HKMA).

Table 1 summarises figures for September 1996 and comparisons with earlier months. Table 2 provides an analysis of loans and advances for use in Hong Kong by major economic sector in the September quarter.

Deposits

Total deposits rose by 0.7% in September, following a 0.3% growth in the previous month. The increase was attributable to a 1.9% growth in HK dollar deposits, which more than offset the fall of 0.8% in foreign currency deposits.

The rise in HK dollar deposits was across-the-board. Partly fuelled by the buoyant asset markets, demand deposits grew rapidly by 9.6% in September, after a decline of 4.6% in August.

Savings and time deposits rose further by 0.8% and 1.4% respectively in September, having increased by 2.6% and 1.4% respectively in the previous month. As for foreign currency deposits, both US dollar and non-US DOLLAR foreign currency deposits declined, by 0.9% and 0.7% respectively.

During the September quarter, total deposits on the whole grew faster despite non-US dollar foreign currency deposits continuing to slow as a result of exchange rate valuation effects.

The growth in HK dollar deposits was much stronger in the September quarter and their growth during the year to September remained broadly in line with domestic credit expansion and slightly faster than nominal GDP growth.

Loans and advances

Total loans and advances fell by 0.9% in September, reflecting a further decline in offshore loans by 1.9% and a mere 0.2% growth in domestic credit expansion. The fall in offshore lending can largely be attributable to the valuation effect stemming from a further depreciation of the Japanese yen.