According to statistics released today by the Monetary Authority of Macao, money supply rebounded in October. 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 3.0% and 6.1% respectively. M1 thus increased 5.6% from one month earlier. Concurrently, quasi-monetary liabilities dropped 0.3%. The sum of these two items, i.e. M2, increased 0.5% to MOP489.6 billion. On an annual basis, M1 and M2 rose 1.7% and 9.9% respectively. The share of Pataca (MOP) in M2 stood at 25.4%, up 0.2 percentage points from a month ago or 1.7 percentage points from a year earlier. The share of Hong Kong Dollar (HKD) in M2 was 49.4%, down 0.1 percentage point month-to-month or 3.8 percentage points year-on-year.
Deposits
Resident deposits increased 0.4% from the preceding month to MOP479.2 billion. Of which, MOP deposits and HKD deposits increased at respective rates of 1.2% and 0.2% whereas other foreign currency deposits kept virtually unchanged. Non-resident deposits dropped 0.4% to MOP233.9 billion. Public sector deposits with the banking sector increased 1.2% to MOP89.1 billion. As a result, total deposits with the banking sector grew 0.3% from a month earlier to MOP802.2 billion. The shares of MOP and HKD in total deposits were 18.4% and 41.3% respectively.
Loans
Domestic loans to the private sector increased 0.8% from a month ago to MOP331.4 billion. Among which, MOP92.0 billion was MOP-denominated and MOP212.2 billion was denominated in HKD, representing 27.8% and 64.0% of the total respectively. On the other hand, external loans rose 0.6% to MOP348.2 billion; of which, loans denominated in MOP and HKD accounted for 1.3% (MOP4.5 billion) and 23.3% (MOP81.2 billion) respectively.
Loan-to-deposit ratios
The loan-to-deposit ratio for the resident sector at end-October rose 0.1 percentage point from the previous month to 58.3%. The ratio for both the resident and non-resident sectors also grew by 0.3 percentage points to 84.7%.
