Hong Kong banks’ loans and deposits ‘virtually unchanged’ in March 

But banks saw a decline in foreign currency and renminbi deposits.

Total loans and deposits held by Hong Kong banks inched up in March, according to data from the Hong Kong Monetary Authority.

Total deposits with authorized institutions increased by 0.2% in March compared to a month earlier. This was driven by a 0.7% increase in Hong Kong dollar deposits.

However, foreign currency deposits dipped 2%, and a 2% decline in renminbi deposits in the city was recorded over the same period.

Total loans and advances, meanwhile, rose by 0.8% in March. Total loans for use in Hong Kong (including trade finance) and loans for use outside Hong Kong rose by 0.8% and 0.7%, respectively.

As a result of these, the Hong Kong dollar loan-to-deposit ratio also fell to 83.2% at the end of March from 83.7% at the end of February, as Hong Kong dollar deposits increased whilst Hong Kong dollar loans were virtually unchanged.

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On a quarterly basis, total loans and advances fell 1% in Q1, the HKMA noted.

This comes as loans for use in Hong Kong (including trade finance) decreased by 1.2% during the first three months of the year, extending the 0.1% decline in Q4 2023.

HKMA blamed the decrease mainly on loans to financial concerns and loans to the wholesale and retail trade sector.