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

Money supply

Currency in circulation and demand deposits grew 1.5% and 5.5% respectively. M1 thus increased 4.9% from one month earlier. Concurrently, quasi-monetary liabilities grew 0.7%. The sum of these two items, i.e. M2, increased 1.2% to MOP489.4 billion. On an annual basis, M1 and M2 rose 12.2% and 19.2% respectively. The share of Pataca (MOP) in M2 stood at 24.6%, up 0.5 percentage points from a month ago but down 0.4 percentage points from a year earlier. The share of Hong Kong Dollar (HKD) in M2 was 49.9%, up 0.6 percentage points month-to-month but down 2.8 percentage points year-on-year.

Deposits

Resident deposits increased 1.2% from the preceding month to MOP479.6 billion. Of which, MOP deposits and HKD deposits increased at respective rates of 3.7% and 2.4% whereas other foreign currency deposits dropped 3.1%. Non-resident deposits rose 6.7% to MOP226.0 billion. Public sector deposits with the banking sector also increased 1.0% to MOP88.9 billion. As a result, total deposits with the banking sector grew 2.7% from a month earlier to MOP794.4 billion. The shares of MOP and HKD in total deposits were 18.5% and 41.1% respectively.

Loans

Domestic loans to the private sector increased 2.9% from a month ago to MOP317.6 billion. Among which, MOP88.6 billion was MOP-denominated and MOP199.1 billion was denominated in HKD, representing 27.9% and 62.7% of the total respectively. On the other hand, external loans rose 3.6% to MOP336.6 billion; of which, loans denominated in MOP and HKD accounted for 1.5% (MOP4.9 billion) and 23.1% (MOP77.7 billion) respectively.

Loan-to-deposit ratios

The loan-to-deposit ratio for the resident sector at end-July rose 1.0 percentage point from the previous month to 55.9%. The ratio for both the resident and non-resident sectors also grew by 0.5 percentage points to 82.3%.