According to statistics released today by the Monetary Authority of Macao, broad money supply rebounded in July. As total deposits grew at a faster pace than total loans, the overall loan-to-deposit ratio of the banking sector dropped from a month earlier.
Money supply
Currency in circulation and demand deposits grew 1.4% and 8.0% respectively. M1 thus increased 6.9% from one month earlier. Concurrently, quasi-monetary liabilities rose 3.1%. The sum of these two items, i.e. M2, increased 3.6% to MOP410.7 billion. On an annual basis, M1 and M2 rose 38.6% and 24.1% respectively. The share of Pataca (MOP) in M2 stood at 24.9%, up 0.3 percentage points from a month ago but down 0.8 percentage points from a year earlier. The share of Hong Kong Dollar (HKD) in M2 was 52.7%, down 0.9 percentage points month-to-month or 2.2 percentage points year-on-year.
Deposits
Resident deposits rose 3.6% from the preceding month to MOP402.2 billion. Of which, MOP deposits, HKD deposits and other foreign currency deposits increased at respective rates of 5.4%, 1.9% and 6.2%. Non-resident deposits dropped 3.2% to MOP155.4 billion. Public sector deposits with the banking sector increased 4.0% to MOP59.0 billion. As a result, total deposits with the banking sector grew 1.9% from a month earlier to MOP616.6 billion. The shares of MOP and HKD in total deposits were 20.2% and 45.2% respectively.
Loans
Domestic loans to the private sector increased 3.0% from a month ago to MOP233.2 billion. Among which, MOP74.1 billion was MOP-denominated and MOP136.5 billion was denominated in HKD, representing 31.8% and 58.6% of the total respectively. On the other hand, external loans remained virtually unchanged at MOP266.4 billion; of which, loans denominated in MOP and HKD accounted for 1.1% (MOP3.0 billion) and 21.9% (MOP58.3 billion) respectively.
Loan-to-deposit ratios
The loan-to-deposit ratio for the resident sector at end-July dropped 0.3 percentage points from the previous month to 50.6%. The ratio for both the resident and non-resident sectors also decreased 0.4 percentage points to 81.0%.
