According to the Hong Kong Monetary Authority, total deposits with authorised institutions dropped slightly in February, attributable mainly to a fall in US dollar deposits (0.6%). Hong Kong dollar deposits were virtually unchanged.

Total loans and advances fell by 0.2% in February, as an increase in loans for use outside Hong Kong was offset by a decline in loans for use in Hong Kong.

Analysed by currency, Hong Kong-dollar-denominated loans dropped while foreign-currency loans grew during the month. The Hong Kong dollar loan-to-deposit ratio decreased slightly to 89.1%.

On a seasonally adjusted basis, Hong Kong dollar M1 rose by 3.3% during the month and by 11.7% over a year ago.

Unadjusted Hong Kong dollar M2 and M3 declined by 0.5% and 0.6%, respectively. Compared with a year ago, M2 was little changed and M3 increased by 0.1%.

The Government expenditure for the period April 2002 to February 2003 amounted to $216.9 billion and revenue to $149.2 billion, resulting in a deficit of $67.7 billion, up from $58.4 billion for the 10 months ended January 2003.

The fiscal reserves stood at $304.8 billion at February 28, 2003.