According to the statistics released today by the Monetary Authority of Macao, the proportion of international business in the local banking sector rose in the second quarter of 2021.  At end-June 2021, the share of international assets in total banking assets increased to 86.2% from 85.5% at end-March 2021, while the share of international liabilities in total banking liabilities rose to 83.9% from 82.6%.

Non-local currencies continued to be the dominant denomination in international banking transactions.  At end-June 2021, the shares of the pataca in total international assets and total international liabilities were 0.5% and 0.7% respectively.  The Hong Kong dollar, the US dollar, the renminbi and other foreign currencies accounted for 31.2%, 42.5%, 21.0% and 4.7% of total international assets while their respective shares in total international liabilities were 39.4%, 39.8%, 16.9% and 3.3%.

International Banking Assets

At end-June 2021, total international assets increased by 8.7% from a quarter ago and by 16.0% from a year earlier to MOP2,176.5 billion (USD272.2 billion).  Within this total, external assets went up by 19.7% year-on-year to MOP1,681.8 billion while local assets in foreign currencies also increased by 4.9% to MOP494.6 billion.  As a major component of international assets, external non-bank loans advanced by 19.5% to MOP796.4 billion.

International Banking Liabilities

Total international liabilities increased by 9.5% from three months ago and by 16.9% year-on-year to MOP2,117.3 billion (USD264.8 billion).  Of this total, external liabilities expanded year-on-year by 33.7% to MOP1,285.6 billion whereas local liabilities in foreign currencies fell by 2.1% to MOP831.7 billion.  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 dropped by 3.4% year-on-year to MOP699.2 billion at end-June 2021.

Breakdown of External Banking Assets and Liabilities by Region

The majority of external assets and liabilities of the local banking sector were related to Asia and Europe.  At end-June 2021, claims on Mainland China and Hong Kong occupied 45.7% and 27.3% of total external assets, while claims on Luxembourg and Portugal took up 1.0% and 0.9% respectively. Meanwhile, claims on Portuguese-speaking countries and countries along the “Belt and Road” occupied respective shares of 1.3% and 7.4%.  On external liabilities, Mainland China and Hong Kong accounted for 40.1% and 35.3% of the total respectively, while the United Kingdom and France took up corresponding shares of 5.0% and 4.3%. Portuguese-speaking countries and countries along the “Belt and Road” represented 0.7% 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.