According to the statistics released today by the Monetary Authority of Macao, the proportion of international business in the local banking sector retreated slightly in the fourth quarter of 2017. At end-December 2017, the share of international assets in total banking assets decreased to 84.2% from 84.6% at end-September 2017, whereas the share of international liabilities in total banking liabilities rose to 79.4% from 79.2%.
Non-local currencies continued to be the dominant denomination in international banking transactions. At end-December 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 43.6%, 43.9%, 6.9% and 4.7% of total international assets as well as 52.6%, 35.3%, 6.4% and 3.9% of total international liabilities respectively.
International Banking Assets
At end-December 2017, total international assets increased by 2.4% from a quarter ago and by 9.9% from a year earlier to MOP1,285.6 billion (USD159.7 billion). Within this total, external assets went up by 13.7% year-on-year to MOP935.1 billion while local assets in foreign currencies also advanced by 0.9% to MOP350.5 billion. As a major component of international assets, external non-bank loans increased by 21.0% to MOP437.6 billion.
International Banking Liabilities
Total international liabilities increased by 3.2% from three months ago and by 10.9% year-on-year to MOP1,212.3 billion (USD150.6 billion). Of this total, external liabilities and local liabilities in foreign currencies expanded year-on-year by 12.2% to MOP571.1 billion and 9.8% to MOP641.2 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 14.5% to MOP569.4 billion at end-December 2017 from MOP497.5 billion at end-December 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-December 2017, claims on Hong Kong and Mainland China occupied 37.8% and 30.8% of total external assets, while claims on the United Kingdom and Portugal took up 2.1% and 1.4% respectively. Meanwhile, claims on Portuguese-speaking countries and countries along the “Belt and Road” occupied respective shares of 1.6% and 3.5%. On external liabilities, Hong Kong and Mainland China accounted for 52.2% and 22.8% of the total respectively, while the United Kingdom and Portugal took up 1.7% and 0.8% respectively. Portuguese-speaking countries and countries along the “Belt and Road” represented 1.0% and 11.3% 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.