International business in banking sector retreats

The proportion of international business in the local banking sector retreated slightly in the fourth quarter of 2017, according to statistics released yesterday by the Monetary Authority of Macao. At the end of December 2017, the share of international assets in total banking assets decreased to 84.2 percent from 84.6 percent at the end of September 2017, whereas the share of international liabilities in total banking liabilities rose to 79.4 percent from 79.2 percent.

Non-local currencies continued to be the dominant denomination in international banking transactions during the final quarter of last year.

At the end of December 2017, the shares in MOP in total international assets and total international liabilities were 0.9 percent and 1.8 percent respectively. 

The HKD, the USD, the RMB and other foreign currencies accounted for 43.6 percent, 43.9 percent, 6.9 percent and 4.7 percent of total international assets as well as 52.6 percent, 35.3 percent, 6.4 percent and 3.9 percent of total international liabilities respectively, according to the Monetary Authority.

At the end of last year, total international assets increased by 2.4 percent from a quarter ago and by 9.9 percent from a year earlier to MOP1,285.6 billion (USD159.7 billion). As a major component of international assets, external non- bank loans increased by 21 percent to MOP437.6 billion.

Meanwhile, total international liabilities increased by 3.2 percent from three months ago and by 10.9 percent year-on-year to MOP1,212.3 billion (USD150.6 billion).

Of this total, external liabilities and local liabilities in foreign currencies expanded year-on-year by 12.2 percent to MOP571.1 billion and 9.8 percent to MOP641.2 billion respectively.

Foreign currency deposits held by residents and the MSAR government in local banks continued to form a major component of international liabilities.  This type of deposits grew by 14.5 percent to MOP569.4 billion at the end of December 2017 from MOP497.5 billion at the end of December 2016.

The majority of external assets and liabilities were related to Asia and Europe.