According to statistics released today by the Monetary Authority of Macao, broad money supply increased at a faster pace in July. As total loans grew faster than deposits, the overall loan-to-deposit ratio of the banking sector rose from a month earlier.

Money supply

Currency in circulation and demand deposits rose 0.6% and 4.2% respectively. M1 thus increased 3.5% from one month earlier. Concurrently, quasi-monetary liabilities grew 2.8%. The sum of these two items, i.e. M2, grew 2.9% to MOP330.8 billion. On an annual basis, M1 and M2 rose 6.9% and 20.7% respectively. The share of Pataca (MOP) in M2 stood at 25.7%, down 0.4 percentage points over a month ago or 0.5 percentage points from a year earlier. The share of Hong Kong Dollar (HKD) in M2 was 55.0%, up 1.0 percentage point month-to-month or 0.8 percentage points year-on-year.

Deposits

Resident deposits grew 3.0% from the preceding month to MOP323.7 billion. Of which, MOP deposits, HKD deposits and other foreign currency deposits increased at respective rates of 1.3%, 4.7% and 0.1%. Non-resident deposits grew 1.1% to MOP127.1 billion while public sector deposits with the banking sector increased 2.7% to MOP40.4 billion. As a result, total deposits with the banking sector rose 2.5% from a month earlier to MOP491.2 billion. The shares of MOP and HKD in total deposits were 21.2% and 45.5% respectively.

Loans

Domestic loans to the private sector increased 3.8% on a monthly basis to MOP186.5 billion. Among which, MOP50.3 billion was MOP-denominated and MOP117.4 billion was denominated in HKD, representing 26.9% and 62.9% of the total respectively. On the other hand, external loans rose 5.8% to MOP213.1 billion; of which, loans denominated in MOP and HKD accounted for 0.6% (MOP1.2 billion) and 24.6% (MOP52.5 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-July rose 0.4 percentage points month-to-month to 51.2%. The ratio for both the resident and non-resident sectors was 81.4%, up 1.9 percentage points from end-June.