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 2017. At end-March 2017, the share of international assets in total banking assets rose to 84.7% from 84.1% at end-December 2016, while the share of international liabilities in total banking liabilities grew to 79.2% from 78.7%.
Non-local currencies continued to be the dominant denomination in international banking transactions. At end-March 2017, the shares of the pataca in total international assets and total international liabilities were 0.8% and 1.5% respectively. The Hong Kong dollar, the US dollar, the renminbi and other foreign currencies accounted for 42.3%, 45.3%, 6.2% and 5.5% of total international assets as well as 53.6%, 36.6%, 5.1% and 3.3% of total international liabilities respectively.
International Banking Assets
At end-March 2017, total international assets increased by 3.9% from a quarter ago and by 7.7% from a year earlier to MOP1,215.5 billion (USD 151.8 billion). Within this total, external assets rose by 6.2% year-on-year to MOP883.8 billion while local assets in foreign currencies went up by 12.0% to MOP331.7 billion. As a major component of international assets, external non-bank loans increased by 6.5% to MOP392.6 billion.
International Banking Liabilities
Total international liabilities advanced by 3.9% from three months ago and by 6.6% year-on-year to MOP1,136.6 billion (USD 142.0 billion). Of this total, external liabilities fell year-on-year by 6.5% to MOP543.8 billion whereas local liabilities in foreign currencies grew by 22.3% to MOP592.8 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 18.0% to MOP517.0 billion at end-March 2017 from MOP438.1 billion at end-March 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-March 2017, claims on Hong Kong and Mainland China occupied 36.7% and 27.2% of total external assets, while claims on the United Kingdom and Portugal took up 2.3% and 2.0% respectively. Meanwhile, claims on Portuguese-speaking countries and countries along the “Belt and Road” occupied respective shares of 2.0% and 5.5%. On external liabilities, Hong Kong and Mainland China accounted for 50.6% and 21.3% of the total respectively, while France and Portugal took up 1.0% and 0.8% respectively. Portuguese-speaking countries and countries along the “Belt and Road” represented 1.1% and 7.0% 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.