According to statistics released today by the Monetary Authority of Macao, broad money supply continued to increase in May. 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 0.1% and 12.6% respectively. M1 thus increased 10.7% from one month earlier. Concurrently, quasi-monetary liabilities rose 1.6%. The sum of these two items, i.e. M2, increased 2.8% to MOP407.6 billion. On an annual basis, M1 and M2 rose 52.4% and 27.2% respectively. The share of Pataca (MOP) in M2 stood at 24.0%, down 0.7 percentage points from a month ago or 1.8 percentage points from a year earlier. The share of Hong Kong Dollar (HKD) in M2 was 55.1%, up 0.4 percentage points month-to-month or 0.8 percentage points year-on-year.
Deposits
Resident deposits rose 2.9% from the preceding month to MOP399.4 billion. Of which, MOP deposits dropped 0.3% while HKD deposits and other foreign currency deposits increased at respective rates of 3.6% and 4.5%. Non-resident deposits grew 6.7% to MOP150.6 billion whereas public sector deposits with the banking sector grew 4.0% to MOP55.9 billion. As a result, total deposits with the banking sector rose 3.9% from a month earlier to MOP605.9 billion. The shares of MOP and HKD in total deposits were 19.7% and 47.0% respectively.
Loans
Domestic loans to the private sector increased 1.8% from a month ago to MOP220.8 billion. Among which, MOP71.5 billion was MOP-denominated and MOP129.5 billion was denominated in HKD, representing 32.4% and 58.7% of the total respectively. On the other hand, external loans remained virtually unchanged at MOP260.0 billion; of which, loans denominated in MOP and HKD accounted for 0.9% (MOP2.3 billion) and 21.2% (MOP55.1 billion) respectively.
Loan-to-deposit ratios
The loan-to-deposit ratio for the resident sector at end-May dropped 0.6 percentage points from the previous month to 48.5%. The ratio for both the resident and non-resident sectors fell 2.4 percentage points to 79.4%.
