Economy | Int’l business in banking falls

The proportion of international business in the local banking sector dropped slightly in the third quarter of 2016, according to statistics released yesterday by the Monetary Authority of Macao.

At end-September 2016, the share of international assets in total banking assets fell to 84.3 percent from 84.9 percent at end-June 2016. The share of international liabilities in total banking liabilities declined to 79.1 percent from 80.4 percent during the same period.

Non-local currencies remained the dominant denomination in international banking transactions. At the end of September 2016, shares of MOP in total international assets and total international liabilities were 0.8 percent and 1.7 percent, respectively. HKD, USD and RMB accounted for 43.2 percent, 41.6 percent and eight percent of total international assets as well as 50.2 percent, 38.2 percent, 6.6 percent of liabilities, respectively.

At the end of September, total international assets dropped by 1.4 percent from the previous quarter and by 4 percent year-on-year to about MOP1,151 billion.

Meanwhile, total international liabilities decreased by 2.3 percent from three months ago and 5.7 percent year-on-year to about MOP1,080 billion.

Foreign currency deposits held by residents and the MSAR government in local banks continued to form a major component of international liabilities during the month. This type of deposits grew by 6.2 percent to MOP463.6 billion at the end of September 2016, compared to MOP436.7 billion last year.

On external liabilities, Hong Kong and mainland China accounted for 51.5 percent and 21.4 percent of the total, respectively. Portugal and France took up 0.8 percent and 0.7 percent, respectively. Portuguese- speaking countries represented 1.1 percent of total liabilities.