The share of international assets and liabilities in the local banking sector both managed to increase yearly as of the end of June 2017, data released recently by the Monetary Authority of Macau (AMCM) reveals.
As of June this year, the amount of international assets increased by 4.5 per cent year-on-year to MOP1.22 trillion (US$151.8 billion) while the amount of international liabilities increased 3.2 per cent year-on-year to MOP1.14 trillion.
In the second quarter, both international assets and liabilities increased 0.4 per cent and 0.5 per cent quarter-to-quarter.
The share of international assets of total banking assets fell by 0.3 percentage points quarter-to-quarter to 84.4 per cent, while the share of international liabilities of total banking liabilities went down 0.2 percentage points to 79 per cent.
Assets and liabilities breakdown
Of all total international assets, external assets went up 3.4 per cent yearly to MOP892 billion, while local assets in foreign currencies increased 10 per cent to MOP546.2 billion.
At the same time, external non-bank loans – considered a major component of the assets – increased 15.3 year-on-year to MOP428 billion.
Of total international liabilities, local liabilities in foreign currencies posted a yearly increase of 3.2 per cent to MOP1.14 trillion, although external liabilities dropped 10 per cent year-on-year to MOP546.2 billion.
Foreign currency deposits held by local residents and the MSAR Government in local banks accounted for a major part of total liabilities, posting a hike of 19.2 per cent yearly at the end of June to almost MOP531.3 billion.
Currency by currency
In terms of currency, at the end of the first three months of this year the Hong Kong dollar and U.S. dollar accounted for the majority of total international assets, at 42.1 per cent and 45.3 per cent, respectively, and of international liabilities, representing 54.3 per cent and 35.3 per cent, respectively.
Meanwhile, renminbi represented 6.4 per cent of international assets and 5.6 per cent of international liabilities, while the pataca maintained the same share of the previous quarter of 0.8 per cent and 1.5 per cent share of total international assets and liabilities, respectively.
Other international currencies still represented 5.4 per cent of international assets and 3.3 per cent of international liabilities as at the end of June.
Country by country
In terms of region, countries in Asia and Europe comprised the majority of external assets and liabilities.
Claims on Hong Kong and Mainland China accounted for 36.6 per cent and 27.5 per cent of total external assets, respectively, as at the end of June this year. At the same time, claims in the United Kingdom and Portugal accounted for 2.1 per cent and 2 per cent, respectively.
As for external liabilities, Hong Kong and the Mainland accounted for 49.2 per cent and 21.3 per cent, while Portugal and Germany represented a share of 1.3 per cent and 0.6 per cent.
Claims on Portuguese countries and those involved in the ‘One Belt, One Road’ development policy represented 1.6 per cent of external assets and 10.8 per cent of external liabilities.