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 third quarter of 2020.  At end-September 2020, the share of international assets in total banking assets increased to 85.8% from 85.5% at end-June 2020, while the share of international liabilities in total banking liabilities remained at 82.6%.

Non-local currencies continued to be the dominant denomination in international banking transactions.  At end-September 2020, the shares of the pataca in total international assets and total international liabilities were 0.7% and 0.6% respectively.  The Hong Kong dollar, the US dollar, the renminbi and other foreign currencies accounted for 34.2%, 48.0%, 12.3% and 4.8% of total international assets while their respective shares in total international liabilities were 39.8%, 44.5%, 10.6% and 4.4%.

International Banking Assets

At end-September 2020, total international assets increased by 1.2% from a quarter ago and by 13.1% from a year earlier to MOP1,897.5 billion (USD237.7 billion).  Within this total, external assets went up by 11.3% year-on-year to MOP1,414.2 billion while local assets in foreign currencies also increased by 18.9% to MOP483.2 billion.  As a major component of international assets, external non-bank loans advanced by 15.8% to MOP658.9 billion.

International Banking Liabilities

Total international liabilities increased by 0.9% from three months ago and by 13.6% year-on-year to MOP1,827.7 billion (USD229.0 billion).  Of this total, external liabilities and local liabilities in foreign currencies expanded year-on-year by 17.0% to MOP980.7 billion and 9.9% to MOP846.9 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 2.4% year-on-year to MOP704.6 billion at end-September 2020.

Breakdown of External Banking Assets and Liabilities by Region

The majority of external assets and liabilities were related to Asia and Europe.  At end-September 2020, claims on Mainland China and Hong Kong occupied 37.2% and 28.1% of total external assets, while claims on Germany and Portugal took up 1.2% and 1.0% respectively. Meanwhile, claims on Portuguese-speaking countries and countries along the “Belt and Road” occupied respective shares of 1.5% and 7.7%.  On external liabilities, Hong Kong and Mainland China accounted for 44.7% and 27.4% of the total respectively, while the United Kingdom and France took up 4.9% and 3.1% respectively. Portuguese-speaking countries and countries along the “Belt and Road” represented 0.8% and 8.2% 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.