Bank deposits slipped by 1.2% in February

HK$ deposits dipped by 3%.

According to the Monetary Authority, total deposits with authorised institutions dropped by 1.2% in February.

Hong Kong-dollar deposits decreased by 3%, as the contraction in savings and time deposits exceeded the expansion in demand deposits.

Overall foreign-currency deposits grew by 0.7%, and renminbi deposits in Hong Kong increased by 4.4% to RMB651.7 billion. The total remittance of renminbi for cross-border trade settlement amounted to RMB221.7 billion, compared to RMB268.5 billion the previous month.

Total loans and advances dropped 0.2%. Loans for use in Hong Kong declined by 0.7% and loans for use outside Hong Kong increased by 0.8%. As Hong Kong-dollar loans decreased at a slower rate than deposits, the Hong Kong-dollar loan-to-deposit ratio rose to 79.7% at the end of February from 78.4% a month previously.

Seasonally adjusted Hong Kong-dollar M1 increased by 1.3% in February and rose by 17.2% year on year. Unadjusted Hong Kong-dollar M3 declined by 2.7% during the month and picked up by 8.5% from a year earlier.