TNAG-2977-FCO40-1469-Economic-policy-in-Hong-Kong-1982 — Page 129

3.10

In sum, domestic

credit,

which is a measure that

combines loans and advances for use in Hong Kong with other

forms of lending by banks and deposit-taking companies (10)

grew by $26.3 billion or 15% in the first half.

Net spot foreign currency position

3.11

an increase of

During the first half, there was

$107.8 billion

billion to $469.1 billion in the spot foreign currency liabilities of the monetary sector, partly as a result of the

exemption of foreign currency deposits from interest

withholding tax. The sector's spot foreign currency assets

also rose, by $88.8 billion to $457.7 billion. Therefore, the

monetary sector as a whole had net spot foreign currency

liabilities at mid-year of $11.4 billion, comprising $4.2 billion of net spot liabilities of banks and $7.2 billion of

net spot

liabilities of deposit-taking companies. This compares with the sector's net spot assets of $7.6 billion six

months earlier.

/ Interest

(10) In addition to the loans and advances listed in paragraphs 3.8 and 3.9, domestic credit includes holdings of bank acceptances and bills of exchange, holdings of floating rate notes and commercial paper denominated in Hong Kong dollars and loans for use outside Hong Kong denominated in Hong Kong dollars.

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