According to statistics released today by the Monetary Authority of Macao, broad money supply continued to fall in July. As total loans increased whereas total deposits decreased, the overall loan-to-deposit ratio of the banking sector rose from a month earlier.

Money supply

Currency in circulation grew 1.4% whereas demand deposits dropped 16.4%. M1 thus decreased 13.4% from one month earlier. Concurrently, quasi-monetary liabilities rose 1.3%. The sum of these two items, i.e. M2, decreased 0.7% to MOP485.3 billion. On an annual basis, M1 and M2 dropped 7.6% and 0.8% respectively. The share of Pataca (MOP) in M2 stood at 28.3%, up 1.1 percentage points from a month ago or 3.7 percentage points from a year earlier. The share of Hong Kong Dollar (HKD) in M2 was 48.5%, down 1.5 percentage points month-to-month or 1.4 percentage points year-on-year. The share of Chinese Yuan (CNY) was 11.0%, down 0.4 percentage points month-to-month or 4.9 percentage points year-on-year. The share of United States Dollar (USD) was 10.0%, up 0.8 percentage points month-to-month or 2.4 percentage points year-on-year.

Deposits

Resident deposits decreased 0.8% from the preceding month to MOP473.7 billion. Of which, MOP and USD deposits increased at respective rates of 3.4% and 7.7%. HKD, CNY and other foreign currency deposits decreased 3.6%, 4.1% and 0.6% respectively. Non-resident deposits dropped 6.5% to MOP248.8 billion. Public sector deposits with the banking sector increased 1.0% to MOP122.9 billion. As a result, total deposits with the banking sector fell 2.3% from a month earlier to MOP845.4 billion. The shares of MOP, HKD, CNY and USD in total deposits were 19.4%, 41.2%, 13.4% and 21.9% respectively.

Loans

Domestic loans to the private sector increased 2.2% from a month ago to MOP384.1 billion. Among which, MOP102.7 billion was MOP-denominated, MOP252.1 billion was denominated in HKD, MOP3.3 billion was denominated in CNY and MOP23.5 billion was denominated in USD, representing 26.7%, 65.6%, 0.8% and 6.1% of the total respectively. On the other hand, external loans grew 0.6% to MOP387.9 billion; of which, loans denominated in MOP, HKD, CNY and USD accounted for 1.5% (MOP5.7 billion), 22.0% (MOP85.4 billion), 20.3% (MOP78.9 billion) and 50.8% (MOP197.2 billion) respectively.

Operating ratios

The loan-to-deposit ratio for the resident sector at end-July grew 1.6 percentage points from the previous month to 64.4%. The ratio for both the resident and non-resident sectors also rose 3.3 percentage points to 91.3%. The one-month and three-month current assets to liabilities ratios stayed at relatively high levels, marked at 56.3% and 59.0% respectively. At end-July, the non-performing loan ratio, an indicator for bank asset quality, was 0.1%, virtually stable when compared with the previous month and the same period last year.