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 2019. At end-December 2019, the share of international assets in total banking assets decreased to 85.2% from 85.4% at end-September 2019, whereas the share of international liabilities in total banking liabilities rose to 82.0% from 81.9%.
Non-local currencies continued to be the dominant denomination in international banking transactions. At end-December 2019, the shares of the pataca in total international assets and total international liabilities were 0.8% and 0.6% respectively. The Hong Kong dollar, the US dollar, the renminbi and other foreign currencies accounted for 38.2%, 46.0%, 9.6% and 5.5% of total international assets as well as 42.5%, 45.6%, 7.0% and 4.1% of total international liabilities respectively.
International Banking Assets
At end-December 2019, total international assets increased by 2.4% from a quarter ago and by 12.7% from a year earlier to MOP1,717.3 billion (USD214.1 billion). Within this total, external assets went up by 14.9% year-on-year to MOP1,292.9 billion while local assets in foreign currencies also increased by 6.4% to MOP424.4 billion. As a major component of international assets, external non-bank loans advanced by 10.5% to MOP554.8 billion.
International Banking Liabilities
Total international liabilities increased by 2.8% from three months ago and by 14.1% year-on-year to MOP1,653.4 billion (USD206.1 billion). Of this total, external liabilities and local liabilities in foreign currencies expanded year-on-year by 23.8% to MOP851.2 billion and 5.3% to MOP802.3 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 6.2% year-on-year to MOP706.6 billion at end-December 2019.
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 2019, claims on Mainland China and Hong Kong occupied 35.8% and 30.5% of total external assets, while claims on Portugal and the United Kingdom took up 1.2% and 1.0% respectively. Meanwhile, claims on Portuguese-speaking countries and countries along the “Belt and Road” occupied respective shares of 1.6% and 6.7%. On external liabilities, Hong Kong and Mainland China accounted for 44.7% and 22.3% of the total respectively, while the United Kingdom and France took up 6.1% and 3.2% respectively. Portuguese-speaking countries and countries along the “Belt and Road” represented 0.7% and 13.4% 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.