According to the statistics released today by the Monetary Authority of Macao, the proportion of international business in the local banking sector fell in the fourth quarter of 2018. At end-December 2018, the share of international assets in total banking assets decreased to 85.3% from 86.0% at end-September 2018, whereas the share of international liabilities in total banking liabilities rose to 81.2% from 81.1%.
Non-local currencies continued to be the dominant denomination in international banking transactions. At end-December 2018, 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 43.6%, 44.8%, 6.5% and 4.3% of total international assets as well as 49.8%, 39.1%, 6.2% and 4.2% of total international liabilities respectively.
International Banking Assets
At end-December 2018, total international assets increased by 3.0% from a quarter ago and by 18.2% from a year earlier to MOP1,523.5 billion (USD188.9 billion). Within this total, external assets went up by 20.7% year-on-year to MOP1,125.0 billion while local assets in foreign currencies also advanced by 11.6% to MOP398.5 billion. As a major component of international assets, external non-bank loans increased by 15.7% to MOP506.3 billion.
International Banking Liabilities
Total international liabilities increased by 3.9% from three months ago and by 19.9% year-on-year to MOP1,449.9 billion (USD179.8 billion). Of this total, external liabilities and local liabilities in foreign currencies expanded year-on-year by 21.4% to MOP690.5 billion and 18.6% to MOP759.5 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 16.8% year-on-year to MOP665.3 billion at end-December 2018.
Breakdown of External Banking Assets and Liabilities by Region
The majority of external assets and liabilities were related to Asia and Europe. At end-December 2018, claims on Hong Kong and Mainland China occupied 34.0% and 33.5% of total external assets, while claims on the United Kingdom and Portugal took up 1.3% and 1.2% respectively. Meanwhile, claims on Portuguese-speaking countries and countries along the “Belt and Road” occupied respective shares of 1.5% and 4.8%. On external liabilities, Hong Kong and Mainland China accounted for 53.7% and 15.2% of the total respectively, while the United Kingdom and France took up 3.5% and 0.9% respectively. Portuguese-speaking countries and countries along the “Belt and Road” represented 0.6% and 12.4% 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.