Deposits in Hong Kong banks rise 1.8%

Both total deposits and Hong Kong dollar deposits post increases in December.

The Monetary Authority said the 1.8% rise in total deposits and the 1.9% improvement in Kong dollar deposits reflected increases in demand and savings.

It also reported that overall foreign currency deposits grew 1.6% while renminbi deposits increased 5.6% to RMB603 billion. Total renminbi remittance for cross-border trade settlement amounted to RMB264.1 billion compared to RMB243 billion in November.

Total loans and advances rose 1.5%. Hong Kong dollar loans, however, increased at a slower rate than deposits. This caused the Hong Kong dollar loan-to-deposit ratio to fall to 79.8% at the end of December from 80.7% a month earlier.

Seasonally adjusted Hong Kong dollar M1 rose 2.1% in December, and expanded 15.8% year-on-year. Unadjusted Hong Kong dollar M3 increased 1.9% during the month and expanded 12.1% from a year earlier.