TNAG-1267-FCO40-1616-Economic-situation-in-Hong-Kong-1983 — Page 184

CHAPTER 3: The FINANCIAL SECTOR

Introduction

3.1

One new bank licence was granted in the first quarter and one registered deposit-taking company achieved

licenced status. Because an institution does not generally begin to operate a licence until some time after it has been

granted, the number of licensed banks in operation was unchanged during the first quarter, at 128, while the number

of licensed deposit-taking companies in operation increased by

3 to 21 (1). Difficulties experienced by a handful of

registered deposit-taking companies resulted in the revocation

of 8 registrations by the Commissioner of Deposit-taking

Companies, leaving 335 such companies in operation. In total,

therefore, the monetary sector comprised 484 operating deposit-taking institutions at the end of March.

Money supply

3.2

(2)

During the first quarter, total (i.e. all

currencies) money supply on all definitions experienced moderate growth. Total Ml grew by 4.1%, in contrast to a fall

/of

(1)

(2)

There were 132 licensed banks and 23 licensed deposit-taking companies in Hong Kong at the end of March 1983, of which 4 banks and 2 licensed deposit-taking companies had not yet begun to operate under their licences.

The Definitions of the Money Supply are:

Ml Total

M2

-

Total

M3

-

Total

Notes and coins with the public, plus customers' demand deposits with licensed banks.

Ml plus customers' savings and

savings and time deposits with licensed banks, plus negotiable certificates of deposit issued by licensed banks and held outside the monetary sector.

M2 plus customers' deposits with licensed and registered deposit-taking companies plus negotiable certificates of deposit issued by deposit-taking companies and held outside the monetary sector.

HK$ML, HK$M2 and HK$M3 are the Hong Kong dollar components of these definitions.

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