According to the statistics released today (19 February) by the Monetary Authority of Macao, the proportion of international business in the local banking sector fell in the fourth quarter of 2023. At end-December 2023, the share of international assets in total banking assets decreased to 83.8% from 84.0% at end-September 2023, while the share of international liabilities in total banking liabilities remained at 81.8%.
Non-local currencies continued to be the dominant denomination in international banking transactions. At end-December 2023, both the shares of the pataca in total international assets and total international liabilities were 0.8%. The Hong Kong dollar, the US dollar, the renminbi and other foreign currencies accounted for 32.3%, 42.9%, 20.1% and 4.0% of total international assets while their respective shares in total international liabilities were 35.2%, 38.9%, 21.4% and 3.7%.
International Banking Assets
At end-December 2023, total international assets decreased by 0.3% from a quarter ago to MOP2,034.1 billion (USD252.7 billion). Within this total, external assets fell by 0.4% from the previous quarter to MOP1,474.9 billion while local assets in foreign currencies dropped by 0.1% to MOP559.1 billion. As a major component of international assets, external non-bank loans decreased by 3.6% to MOP555.1 billion.
International Banking Liabilities
Total international liabilities decreased by 0.1% from three months ago to MOP1,986.2 billion (USD246.7 billion). Of this total, external liabilities rose quarter-to-quarter by 0.7% to MOP1,087.6 billion whereas local liabilities in foreign currencies fell by 1.0% to MOP898.6 billion. Foreign currency deposits held by residents and the MSAR government in local banks constituted a major component of international liabilities. This type of deposits dropped by 2.8% to MOP657.0 billion at end-December 2023.
Breakdown of External Banking Assets and Liabilities by Region
The majority of external assets and liabilities of the local banking sector were related to Asia. At end-December 2023, claims on Mainland China and Hong Kong occupied 37.9% and 27.3% of total external assets. Meanwhile, claims on Portuguese-speaking countries and Belt and Road Initiative countries occupied respective shares of 0.9% and 12.7%. On external liabilities, Hong Kong and Mainland China accounted for 44.8% and 35.2% of the total respectively. Portuguese-speaking countries and Belt and Road Initiative countries represented 0.3% and 8.5% respectively.
The compilation of International Banking Statistics mainly follows the methodology advocated by the Bank for International Settlements in order to facilitate Macao SAR’s participation in the “Locational International Banking Statistics” project of the international organisation.