According to statistics released today by the Monetary Authority of Macao, broad money supply continued to grow in January. Driven by an increase in loans, the overall loan-to-deposit ratio of the banking sector rose from a month earlier.
Money supply
Currency in circulation and demand deposits grew 5.7% and 9.4% respectively. M1 thus increased 8.8% from one month earlier. Concurrently, quasi-monetary liabilities grew 3.5%. The sum of these two items, i.e. M2, rose 4.1% to MOP390.0 billion. On an annual basis, both M1 and M2 rose 25.6%. The share of Pataca (MOP) in M2 stood at 25.0%, up 0.8 percentage points from a month ago but down 1.7 percentage points from a year earlier. The share of Hong Kong Dollar (HKD) in M2 was 55.0%, down 0.8 percentage points month-to-month but up 0.6 percentage points year-on-year.
Deposits
Resident deposits rose 4.1% from the preceding month to MOP381.8 billion. Of which, MOP deposits, HKD deposits and other foreign currency deposits increased at respective rates of 7.6%, 2.5% and 4.6%. Non-resident deposits grew 5.2% to MOP134.8 billion and public sector deposits with the banking sector increased 7.3% to MOP49.1 billion. As a result, total deposits with the banking sector rose 4.6% from a month earlier to MOP565.6 billion. The shares of MOP and HKD in total deposits were 20.9% and 46.5% respectively.
Loans
Domestic loans to the private sector increased 4.0% from a month ago to MOP206.0 billion. Among which, MOP65.2 billion was MOP-denominated and MOP121.4 billion was denominated in HKD, representing 31.6% and 59.0% of the total respectively. On the other hand, external loans increased 8.7% to MOP227.1 billion; of which, loans denominated in MOP and HKD accounted for 1.0% (MOP2.2 billion) and 22.9% (MOP52.0 billion) respectively.
Loan-to-deposit ratios
The loan-to-deposit ratio for the resident sector at end-January edged down 0.2 percentage points month-to-month to 47.8%. The ratio for both the resident and non-resident sectors was 76.6%, up 1.3 percentage points from end-December.
