According to statistics released today by the Monetary Authority of Macao, on a monthly basis, money supply witnessed a decline in December. As deposits with banks dropped and total loans increased, the overall loan-to-deposit ratio rose from a month earlier.

Money supply

Currency in circulation rose 2.8% while demand deposits dropped 9.3%. M1 thus decreased 7.4% from one month earlier. Concurrently, quasi-monetary liabilities dropped 0.4%, driving M2 to fall 1.3% to MOP297.7 billion. On an annual basis, M1 and M2 rose 4.4% and 22.5% respectively. The share of Pataca (MOP) in M2 stood at 26.0%, up 0.9 percentage points over a month ago but down 2.0 percentage points from a year earlier. The share of Hong Kong Dollar (HKD) in M2 was 54.6%, down 0.5 percentage points month-to-month and 0.1 percentage point year-on-year.

Deposits

Resident deposits dropped 1.4% from the previous month to MOP291.6 billion. Of which, MOP deposits grew 2.1% while HKD deposits and other foreign currency deposits decreased at respective rates of 2.2% and 3.5%. In the meantime, non-resident deposits decreased 1.4% to MOP92.9 billion while public sector deposits with the banking sector increased 13.3% to MOP29.6 billion. As a result, total deposits with the banking sector dropped 0.5% from a month earlier to MOP414.0 billion. The shares of MOP and HKD in total deposits were 22.4% and 45.4% respectively.

Loans

Domestic loans to the private sector increased 1.9% on a monthly basis to MOP167.7 billion. Among which, MOP42.3 billion was MOP-denominated and MOP112.2 billion was denominated in HKD, representing 25.2% and 66.9% of the total respectively. Compared with a quarter ago, loans to “gaming”, “manufacturing industries” and “non-monetary financial institutions” increased at respective rates of 76.7%, 12.9% and 7.3% whereas those to “electricity, gas and water” and “restaurants, hotels and similar” dropped 12.5% and 7.5% respectively.

External loans rose 1.6% to MOP154.3 billion; of which, loans denominated in MOP and HKD accounted for 0.7% (MOP1.1 billion) and 33.2% (MOP51.2 billion) respectively.

Loan-to-deposit ratios

Due to the decline in resident deposits and increase in domestic loans to the private sector, the loan-to-deposit ratio for the resident sector at end-December 2011 rose 1.1 percentage points month-to-month to 52.2%. The ratio for both the resident and non-resident sectors was 77.8%, up 1.7 percentage points from the previous month.

For enquiry, please contact:

Research and Statistics Department, Monetary Authority of Macao