According to statistics released today by the Monetary Authority of Macao, broad money supply continued to grow in October. As total deposits increased faster than total loans, the overall loan-to-deposit ratio of the banking sector slid from a month earlier.

Money supply

Currency in circulation and demand deposits grew 0.6% and 15.4% respectively. M1 thus increased 13.0% from one month earlier. Concurrently, quasi-monetary liabilities increased 3.2%. The sum of these two items, i.e. M2, grew 4.4% to MOP445.4 billion. On an annual basis, M1 and M2 rose 41.0% and 23.7% respectively. The share of Pataca (MOP) in M2 stood at 23.7%, down 0.6 percentage points from a month ago and 1.2 percentage points from a year earlier. The share of Hong Kong Dollar (HKD) in M2 was 53.2%, down 0.2 percentage points month-to-month and 2.8 percentage points year-on-year.

Deposits

Resident deposits grew 4.5% from the preceding month to MOP436.7 billion. Of which, MOP deposits, HKD deposits and other foreign currency deposits increased at respective rates of 1.9%, 4.0% and 8.2%. Non-resident deposits dropped 3.0% to MOP168.8 billion. On the other hand, public sector deposits with the banking sector increased 3.2% to MOP66.0 billion. As a result, total deposits with the banking sector surged by 2.4% from a month earlier to MOP671.5 billion.

Loans

Domestic loans to the private sector increased 2.5% from a month ago to MOP249.5 billion. Among which, MOP78.9 billion was MOP-denominated and MOP147.5 billion was denominated in HKD, representing 31.6% and 59.1% of the total respectively. On the other hand, external loans decreased 1.5% to MOP264.8 billion; of which, loans denominated in MOP and HKD accounted for 1.4% (MOP3.7 billion) and 23.0% (MOP61.0 billion) respectively.

Loan-to-deposit ratios

The loan-to-deposit ratio for the resident sector at end-October dropped 0.9 percentage points from the previous month to 49.6%. The ratio for both the resident and non-resident sectors also decreased 1.5 percentage points to 76.6%.