According to statistics released today by the Monetary Authority of Macao, money supply rebounded in December. As total loans increased whereas total deposits dropped, the overall loan-to-deposit ratio of the banking sector rose from a month earlier.
Money supply
Currency in circulation and demand deposits grew 1.3% and 6.3% respectively. M1 thus increased 5.4% from one month earlier. Concurrently, quasi-monetary liabilities remained virtually stable. The sum of these two items, i.e. M2, increased 0.7% to MOP487.6 billion. On an annual basis, M1 and M2 rose 5.0% and 10.5% respectively. The share of Pataca (MOP) in M2 stood at 25.5%, down 0.2 percentage points from a month ago but up 1.4 percentage points from a year earlier. The share of Hong Kong Dollar (HKD) in M2 was 50.7%, up 1.0 percentage point month-to-month but down 2.6 percentage points year-on-year.
Deposits
Resident deposits increased 0.7% from the preceding month to MOP476.7 billion. Of which, MOP deposits and other foreign currency deposits decreased at respective rates of 0.4% and 2.6% whereas HKD deposits rose 2.8%. Non-resident deposits dropped 3.8% to MOP219.4 billion. Public sector deposits with the banking sector increased 4.5% to MOP95.0 billion. As a result, total deposits with the banking sector dropped 0.2% from a month earlier to MOP791.1 billion. The shares of MOP and HKD in total deposits were 19.1% and 43.0% respectively.
Loans
Domestic loans to the private sector increased 2.3% from a month ago to MOP339.1 billion. Among which, MOP94.0 billion was MOP-denominated and MOP218.7 billion was denominated in HKD, representing 27.7% and 64.5% of the total respectively. Analysed by economic sector, "education", "information technology" and "non-monetary financial institutions" increased at respective rates of 108.3%, 56.8% and 40.1% compared with a quarter ago, whereas "manufacturing industries", "electricity, gas and water" and "wholesale and retail trade" dropped 9.2%, 7.4% and 5.7% respectively. External loans rose 0.6% to MOP350.6 billion; of which, loans denominated in MOP and HKD accounted for 1.2% (MOP4.0 billion) and 23.2% (MOP81.3 billion) respectively.
Loan-to-deposit ratios
The loan-to-deposit ratio for the resident sector at end-December rose 0.6 percentage points from the previous month to 59.3%. The ratio for both the resident and non-resident sectors also grew by 1.4 percentage points to 87.2%.
