According to statistics released today by the Monetary Authority of Macao, broad money supply continued to grow in September. Driven by an increase in non-resident deposits, the overall loan-to-deposit ratio of the banking sector dropped from a month earlier.
Money supply
Currency in circulation rose 3.7% while demand deposits dropped 2.4%. M1 thus decreased 1.4% from one month earlier. Concurrently, quasi-monetary liabilities grew 1.2%. The sum of these two items, i.e. M2, increased by 0.9% to MOP351.3 billion. On an annual basis, M1 and M2 rose 12.2% and 26.2% respectively. The share of Pataca (MOP) in M2 stood at 24.4%, down 0.2 percentage points from a month ago or 1.1 percentage points from a year earlier. The share of Hong Kong Dollar (HKD) in M2 was 56.4%, up 0.9 percentage points month-to-month or 3.4 percentage points year-on-year.
Deposits
Resident deposits rose 0.8% from the preceding month to MOP343.9 billion. Of which, MOP deposits and other foreign currency deposits decreased at respective rates of 0.3% and 2.6% while HKD deposits grew 2.5%. In the meantime, non-resident deposits increased 4.5% to MOP121.1 billion while public sector deposits with the banking sector rose 1.6% to MOP41.6 billion. As a result, total deposits with the banking sector rose 1.8% from a month earlier to MOP506.6 billion. The shares of MOP and HKD in total deposits were 20.8% and 47.9% respectively.
Loans
Domestic loans to the private sector increased 2.0% from a month ago to MOP191.4 billion. Among which, MOP54.3 billion was MOP-denominated and MOP120.9 billion was denominated in HKD, representing 28.4% and 63.2% of the total respectively. Compared with a quarter ago, loans to "education", loans to "restaurants, hotels and similar" and "car loans" increased at respective rates of 150.7%, 9.1% and 10.3% whereas those to "information technology" and "manufacturing industries" dropped 20.8% and 13.7% respectively. External loans decreased 1.1% to MOP213.3 billion; of which, loans denominated in MOP and HKD accounted for 0.7% (MOP1.6 billion) and 24.4% (MOP52.0 billion) respectively.
Loan-to-deposit ratios
As domestic loans to the private sector grew faster than resident deposits, the loan-to-deposit ratio for the resident sector at end-September rose 0.5 percentage points month-to-month to 49.6%. The ratio for both the resident and non-resident sectors was 79.9%, down 1.1 percentage points from end-August.
