International banking assets in Macau shrunk by 6.4% in Q2

At the end of the second quarter (Q2) of this year, total international banking assets decreased 6.4% from the previous quarter (Q1) to MOP2,124.8 billion, the Monetary Authority of Macao (AMCM) reported.

Within this total, external assets fell by 7.2% from Q1 to MOP1,546.4 billion, while local assets in foreign currencies dropped by 4.3% to MOP578.5 billion.

Concurrently, the major component of international assets, external non-bank loans, decreased by 7.7% to MOP624.0 billion.

The same report from AMCM also noted that at end-June 2023, the share of international assets in total banking assets decreased to 84.7% from 85.6% at end-March 2023, while the share of international liabilities in total banking liabilities fell to 82.6% from 83.4%.

Non-local currencies continued to be the dominant denomination in international banking transactions, with the shares of the pataca in total international assets and total international liabilities being 0.9% and 0.6% respectively.

The Hong Kong dollar, the US dollar, the renminbi, and other foreign currencies accounted for 32.4%, 42.9%, 20.4%, and 3.5% of total international assets, while their respective shares in total international liabilities were 34.6%, 37.7%, 23.6% and 3.4%.

At the end of the first half of the year, the majority of external assets and liabilities of the local banking sector were related to Asia, with the mainland and Hong Kong accounting for  40.5% and 26.1% of total external assets respectively.

Portuguese-speaking countries and countries along the “Belt and Road” accounted for shares of 0.8% and 11.0% respectively.

On external liabilities, Hong Kong and the mainland accounted for 42.6% and 37.9% of the total respectively, while Portuguese-speaking countries and countries along the “Belt and Road” represented 0.6% and 6.8% respectively.

Besides Hong Kong and the mainland, major banking assets and liabilities are also located in the Cayman Islands, Singapore, and the UK.

The compilation of International Banking Statistics follows the methodology advocated by the Bank for International Settlements to facilitate Macau’s participation in the “Locational International Banking Statistics” project of the international organization.