The proportion of international business in Macao’s local banking sector rose in the first quarter of 2023, the special administrative region’s (SAR) monetary watchdog said on Thursday.
According to statistics released by the Monetary Authority of Macao, the share of international assets in total banking assets increased to 85.6 percent at the end of March from 85.4 percent at the end of December 2022, while the share of international liabilities in total banking liabilities rose to 83.4 percent from 81.9 percent.
Non-local currencies continued to be the dominant denomination in international banking transactions. At the end of March 2023, the shares of the pataca in total international assets and total international liabilities were 0.8 percent and 0.6 percent, respectively.
Hong Kong dollar, U.S. dollar, renminbi, and other currencies accounted for 30.3 percent, 42.8 percent, 22.8 percent, and 3.4 percent of total international assets, respectively, while their respective shares in total international liabilities were 33.4 percent, 38.8 percent, 23.8 percent and 3.5 percent.
At the end of March 2023, total international assets increased by 2.8 percent from a quarter ago to 2,270.9 billion patacas (about 280.9 billion U.S. dollars).
Total international liabilities increased by 4.3 percent from three months ago to 2,212.8 billion patacas (about 273.7 billion U.S. dollars).
The majority of external assets and liabilities of the local banking sector were related to Asia. At the end of March 2023, claims on the mainland and the Hong Kong SAR occupied 42.1 percent and 25.2 percent of total external assets, respectively, while claims on Portuguese-speaking countries (PSCs) and countries along the Belt and Road took up 0.7 percent and 10.8 percent, respectively.
On external liabilities, the mainland and the Hong Kong SAR accounted for 42.0 percent and 41.0 percent of the total, respectively, while PSCs and countries along the Belt and Road represented 0.6 percent and 5.2 percent, respectively.
