According to the statistics released today by the Monetary Authority of Macao, the proportion of international business in the local banking sector rebounded slightly in the third quarter of 2017. At end-September 2017, the share of international assets in total banking assets increased to 84.6% from 84.4% at end-June 2017, while the share of international liabilities in total banking liabilities rose to 79.2% from 79.0%.
Non-local currencies continued to be the dominant denomination in international banking transactions. At end-September 2017, the shares of the pataca in total international assets and total international liabilities were 0.9% and 1.8% respectively. The Hong Kong dollar, the US dollar, the renminbi and other foreign currencies accounted for 42.3%, 43.9%, 8.0% and 4.9% of total international assets as well as 53.0%, 34.9%, 7.2% and 3.0% of total international liabilities respectively.
International Banking Assets
At end-September 2017, total international assets increased by 2.9% from a quarter ago and by 9.1% from a year earlier to MOP1,255.6 billion (USD156.1 billion). Within this total, external assets went up by 9.3% year-on-year to MOP918.8 billion while local assets in foreign currencies also advanced by 8.5% to MOP336.8 billion. As a major component of international assets, external non-bank loans increased by 19.6% to MOP439.5 billion.
International Banking Liabilities
Total international liabilities increased by 2.9% from three months ago and by 8.7% year-on-year to MOP1,175.2 billion (USD146.1 billion). Of this total, external liabilities edged down year-on-year by 0.1% to MOP562.7 billion whereas local liabilities in foreign currencies grew by 18.4% to MOP612.5 billion. 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 16.9% to MOP542.8 billion at end-September 2017 from MOP464.4 billion at end-September 2016.
Breakdown of External Banking Assets and Liabilities by Region
The majority of external assets and liabilities were related to Asia and Europe. At end-September 2017, claims on Hong Kong and Mainland China occupied 36.4% and 33.3% of total external assets, while claims on Portugal and the United Kingdom took up 1.9% and 1.2% respectively. Meanwhile, claims on Portuguese-speaking countries and countries along the “Belt and Road” occupied respective shares of 2.1% and 4.2%. On external liabilities, Hong Kong and Mainland China accounted for 51.3% and 23.1% of the total respectively, while the United Kingdom and Portugal each took up 0.9%. Portuguese-speaking countries and countries along the “Belt and Road” represented 1.1% and 9.8% respectively.
The compilation of International Banking Statistics 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.