According to statistics released today by the Monetary Authority of Macao, money supply retreated in November. 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 grew 3.3% whereas demand deposits dropped 7.7%. M1 thus decreased 5.9% from one month earlier. Concurrently, quasi-monetary liabilities dropped 0.4%. The sum of these two items, i.e. M2, decreased 1.1% to MOP484.3 billion. On an annual basis, M1 and M2 rose 3.9% and 8.7% respectively. The share of Pataca (MOP) in M2 stood at 25.8%, up 0.4 percentage points from a month ago or 2.0 percentage points from a year earlier. The share of Hong Kong Dollar (HKD) in M2 was 49.7%, up 0.3 percentage points month-to-month but down 3.1 percentage points year-on-year.
Deposits
Resident deposits decreased 1.2% from the preceding month to MOP473.6 billion. Of which, MOP deposits increased 0.1% while HKD deposits and other foreign currency deposits decreased at respective rates of 0.5% and 3.6%. Non-resident deposits dropped 2.5% to MOP228.1 billion. Public sector deposits with the banking sector increased 2.0% to MOP90.9 billion. As a result, total deposits with the banking sector dropped 1.2% from a month earlier to MOP792.5 billion. The shares of MOP and HKD in total deposits were 18.8% and 42.0% respectively.
Loans
Domestic loans to the private sector increased 0.1% from a month ago to MOP331.6 billion. Among which, MOP93.0 billion was MOP-denominated and MOP212.3 billion was denominated in HKD, representing 28.0% and 64.0% of the total respectively. On the other hand, external loans remained virtually unchanged at MOP348.4 billion; of which, loans denominated in MOP and HKD accounted for 1.2% (MOP4.3 billion) and 23.0% (MOP80.2 billion) respectively.
Loan-to-deposit ratios
The loan-to-deposit ratio for the resident sector at end-November rose 0.4 percentage points from the previous month to 58.7%. The ratio for both the resident and non-resident sectors also grew by 1.1 percentage points to 85.8%.
