Total deposits with authorised institutions grew for the second consecutive month in June, by 0.6%.

The Monetary Authority said of the total, the Hong Kong dollar rose 0.9% and foreign currency deposits went up 0.3%.

Total loans and advances expanded 1.4%, with loans for use in Hong Kong rising 1.4% and those outside Hong Kong up 1%.

Analysed by currency, Hong Kong dollar and foreign currency loans both rose. As Hong Kong dollar loans rose more than Hong Kong dollar deposits, the loan-to-deposit ratio increased to 85.3% in June.

Expansion of domestic loans broad-based

Analysed by economic use, the expansion of domestic loans in the June quarter was broad-based. In particular, trade financing, and lending to manufacturing and transport-related sectors rose notably on a quarter-on-quarter comparison.

Loans for financial concerns, building, construction, property development and investment, and wholesale and retail trade also registered some increases. However, residential mortgage loans fell during the quarter.

On a seasonally adjusted basis, Hong Kong dollar M1 grew 2.1% in June and 39.3% from a year ago. Unadjusted Hong Kong dollar M2 went up 2.8% and M3 rose 2.6% from a year earlier, while both rose by 0.9% during the month.