International business rises for Macau’s banking sector in Q1 – Macau Business

Macaus banking sectorhas reported growth in international business in the first quarter of 2023,according to the latest statistics released by the Monetary Authority of Macau.

According to a report from the citys de facto central bank on Thursday, the share of international assets rose to 85.6 per cent from 85.4 per cent at the end of December last year, while that of international liabilities increased to 83.4 per cent from 81.9 per cent.

Foreign Currencies

Foreign currenciescontinued to dominate international banking transactions, with non-localcurrencies accounting for the majority of total international assets andliabilities.

At end-March 2023, theshares of the pataca in total international assets and in total internationalliabilities were 0.8 per cent and 0.6 per cent, respectively.

The Hong Kong dollar,the US dollar, the renminbi, and other foreign currencies accounted for themajority of total international assets, while their respective shares in totalinternational liabilities also appeared dominant.

Total international assets

Total international assets increased by 2.8 per cent from the previous quarter to MOP2,270.9 billion (US$281 billion). Within this total, external assets rose by 4.2 per cent from the previous quarter to MOP1,666.5 billion, while local assets in foreign currencies dropped by 1 per cent to MOP604.4 billion.

External non-bank loans, as a major component of international assets, decreased by 3.6 per cent to MOP676.4 billion.

Total international liabilities

Total internationalliabilities went up by 4.3 per cent to MOP2,212.8 billion (USD273.7 billion)over a three-month period.

Of this total, externalliabilities and local liabilities in foreign currencies grew quarter-on-quarterby 5.7 per cent to MOP1,269.6 billion and 2.6 per cent to MOP943.2 billion,respectively.

Deposits taken from external banks were a major component of international liabilities, rising by 15.6 per cent to MOP712.0 billion at end-March 2023.

External assets and liabilities

The majority ofexternal assets and liabilities of the local banking sector were connected withAsia. Claims on mainland China and Hong Kong occupied 42.1 per cent and 25.2per cent of total external assets.

Meanwhile, claims onPortuguese-speaking countries and Belt and Road countries occupied respectiveshares of 0.7 per cent and 10.8 per cent.

When it came toexternal liabilities, mainland China and Hong Kong accounted for 42 per centand 41 per cent respectively, while Portuguese-speaking countries and Belt andRoad countries represented 0.6 per centand 5.2 per cent, respectively.

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International business rises for Macau's banking sector in Q1 - Macau Business