Total deposits with authorised institutions dropped slightly in March, with Hong Kong dollar and foreign currency deposits falling by 0.4% and 1% respectively.

The Monetary Authority announced today that total loans and advances shrank by 0.6% in March. Of the total, loans for use in Hong Kong contracted by 0.2%, while loans for use outside decreased by 3.6%.

Analysed by currency, both Hong Kong dollar denominated loans and foreign currency loans declined. As Hong Kong dollar deposits registered a larger fall than Hong Kong dollar loans, the loan-to-deposit ratio rose slightly to 89.3%.

Analysed by economic use, property-related loans decreased in the March quarter, while trade financing increased moderately. Among other sectors, loans for wholesale and retail trade, and stockbrokers also registered some increases.

On a seasonally adjusted basis, Hong Kong dollar M1 grew by 1.8% during the month and by 15.2% over a year ago. Unadjusted Hong Kong dollar M2 and M3 both declined by 0.4% in March and by 0.5% on a year-on-year comparison.