The Asian Dollar Market (ADM) rebounded
in 2003, lifted by renewed optimism in the global economy (See
Chart 3). Total assets in the ADM reached US$509.1 billion at
end 2003, up 5.5% from US$482.6 billion at end 2002. The increase
was largely due to the surge in the holdings of securities.
Mirroring developments in domestic lending, ACU loans to non-bank
customers grew 7.3%, increasing from US$77.9 billion at end
2002 to US$83.6 billion at end 2003. With positive year-on-year
growth for the first time since 1997, the decline of the ADM
market may have finally bottomed out (See Chart 4). This turnaround
was underpinned by an increase in lending to East Asia and the
Americas.
Interbank lending in the ADM continued to be firm, amounting
to US$341.9 billion at end 2003, a modest 1.8% increase from
US$336 billion at end 2002 (See Chart 5). Most of the interbank
lending in the ADM was directed to East Asia.
Enhancing Risk-focused Supervisory Approach
Box 1 – Fostering a Sound and Progressive
Financial Services Sector
