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 fourth quarter of 2022. At end-December 2022, the share of international assets in total banking assets increased to 85.3% from 84.7% at end-September 2022, while the share of international liabilities in total banking liabilities fell to 81.9% from 82.4%.
Non-local currencies continued to be the dominant denomination in international banking transactions. At end-December 2022, the shares of the pataca in total international assets and total international liabilities were 0.8% and 0.7% respectively. The Hong Kong dollar, the US dollar, the renminbi and other foreign currencies accounted for 32.3%, 42.9%, 20.9% and 3.1% of total international assets while their respective shares in total international liabilities were 34.0%, 38.3%, 24.1% and 2.9%.
International Banking Assets
At end-December 2022, total international assets increased by 6.3% from a quarter ago to MOP2,209.1 billion (USD275.1 billion). Within this total, external assets rose by 2.5% from the previous quarter to MOP1,598.9 billion while local assets in foreign currencies expanded by 17.9% to MOP610.2 billion. As a major component of international assets, external non-bank loans decreased by 5.4% to MOP701.7 billion.
International Banking Liabilities
Total international liabilities increased by 4.9% from three months ago to MOP2,120.9 billion (USD264.1 billion). Of this total, external liabilities and local liabilities in foreign currencies grew quarter-to-quarter by 0.9% to MOP1,201.6 billion and 10.8% to MOP919.3 billion respectively. Foreign currency deposits held by residents and the MSAR government in local banks constituted a major component of international liabilities. This type of deposits dropped by 0.3% to MOP667.2 billion at end-December 2022.
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. At end-December 2022, claims on Mainland China and Hong Kong occupied 40.4% and 24.9% of total external assets. Meanwhile, claims on Portuguese-speaking countries and countries along the “Belt and Road” occupied respective shares of 0.8% and 12.4%. On external liabilities, Hong Kong and Mainland China accounted for 41.0% and 38.2% of the total respectively. Portuguese-speaking countries and countries along the “Belt and Road” represented 0.6% and 6.4% respectively.
The compilation of International Banking Statistics mainly 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.