According to statistics released today by the Monetary Authority of Macao, broad money supply retreated in October. As total deposits decreased at a slightly faster pace than total loans, the overall loan-to-deposit ratio of the banking sector grew marginally from a month earlier.

Money supply

Currency in circulation and demand deposits grew 1.7% and 3.3% respectively. M1 thus increased 3.0% from one month earlier. Concurrently, quasi-monetary liabilities dropped 1.4%. The sum of these two items, i.e. M2, decreased 0.9% to MOP478.1 billion. On an annual basis, M1 and M2 dropped 2.5% and 2.4% respectively. The share of Pataca (MOP) in M2 stood at 29.2%, up 0.7 percentage points from a month ago or 3.8 percentage points from a year earlier. The share of Hong Kong Dollar (HKD) in M2 was 50.7%, up 1.5 percentage points month-to-month or 1.3 percentage points year-on-year. The share of Chinese Yuan (CNY) was 7.7%, down 1.5 percentage points month-to-month or 8.0 percentage points year-on-year. The share of United States Dollar (USD) was 10.2%, down 0.7 percentage points month-to-month but up 2.8 percentage points year-on-year.

Deposits

Resident deposits decreased 1.0% from the preceding month to MOP466.1 billion. Of which, MOP, HKD and other foreign currency deposits increased at respective rates of 1.5%, 2.1% and 1.0%. CNY and USD deposits decreased 17.2% and 7.4% respectively. Non-resident deposits rose 1.5% to MOP273.9 billion. Public sector deposits with the banking sector decreased 3.0% to MOP123.1 billion. As a result, total deposits with the banking sector dropped 0.5% from a month earlier to MOP863.2 billion. The shares of MOP, HKD, CNY and USD in total deposits were 19.6%, 41.7%, 10.6% and 24.7% respectively.

Loans

Domestic loans to the private sector decreased 0.4% from a month ago to MOP388.8 billion. Among which, MOP105.6 billion was MOP-denominated, MOP254.6 billion was denominated in HKD, MOP3.3 billion was denominated in CNY and MOP22.9 billion was denominated in USD, representing 27.2%, 65.5%, 0.8% and 5.9% of the total respectively. On the other hand, external loans dropped 0.3% to MOP387.1 billion; of which, loans denominated in MOP, HKD, CNY and USD accounted for 1.4% (MOP5.5 billion), 24.3% (MOP94.0 billion), 20.2% (MOP78.0 billion) and 48.7% (MOP188.5 billion) respectively.

Operating ratios

At end-October, the loan-to-deposit ratio for the resident sector grew 0.7 percentage points from the previous month to 66.0%. The ratio for both the resident and non-resident sectors also rose 0.1 percentage point to 89.9%. The one-month and three-month current assets to liabilities ratios stayed at relatively high levels, marked at 61.1% and 60.0% respectively. The non-performing loan ratio, an indicator for bank asset quality, was 0.1%, virtually unchanged from one month earlier but down 0.1 percentage point from one year ago.