According to the statistics released today by the Monetary Authority of Macao, the proportion of international business in the local banking sector rebounded in the first quarter of 2018. At end-March 2018, the share of international assets in total banking assets increased to 85.5% from 84.2% at end-December 2017, while the share of international liabilities in total banking liabilities rose to 80.4% from 79.4%.
Non-local currencies continued to be the dominant denomination in international banking transactions. At end-March 2018, the shares of the pataca in total international assets and total international liabilities were 0.8% and 1.9% respectively. The Hong Kong dollar, the US dollar, the renminbi and other foreign currencies accounted for 42.5%, 43.6%, 8.6% and 4.5% of total international assets as well as 51.9%, 36.3%, 6.3% and 3.6% of total international liabilities respectively.
International Banking Assets
At end-March 2018, total international assets increased by 6.5% from a quarter ago and by 12.4% from a year earlier to MOP1,366.0 billion (USD169.0 billion). Within this total, external assets went up by 13.6% year-on-year to MOP1,003.7 billion while local assets in foreign currencies also advanced by 9.3% to MOP362.4 billion. As a major component of international assets, external non-bank loans increased by 18.8% to MOP466.3 billion.
International Banking Liabilities
Total international liabilities increased by 6.2% from three months ago and by 13.0% year-on-year to MOP1,283.8 billion (USD158.9 billion). Of this total, external liabilities and local liabilities in foreign currencies expanded year-on-year by 14.7% to MOP623.6 billion and 11.4% to MOP660.2 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 12.8% to MOP583.4 billion at end-March 2018 from MOP517.0 billion at end-March 2017.
Breakdown of External Banking Assets and Liabilities by Region
The majority of external assets and liabilities were related to Asia and Europe. At end-March 2018, claims on Mainland China and Hong Kong occupied 35.5% and 34.1% of total external assets, while claims on Germany and Portugal took up 1.5% and 1.4% respectively. Meanwhile, claims on Portuguese-speaking countries and countries along the “Belt and Road” occupied respective shares of 1.6% and 3.4%. On external liabilities, Hong Kong and Mainland China accounted for 56.0% and 23.7% of the total respectively, while the United Kingdom and Portugal took up 1.9% and 0.9% respectively. Portuguese-speaking countries and countries along the “Belt and Road” represented 1.0% and 8.7% 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.