According to statistics released today by the Monetary Authority of Macao, money supply continued to grow in October. As total loans increased whereas total deposits decreased, the overall loan-to-deposit ratio of the banking sector rose from a month ago. Concurrently, the non-performing loan ratio, an indicator for bank asset quality, remained virtually unchanged.

Money supply

Currency in circulation and demand deposits grew 0.5% and 9.5% respectively. M1 thus increased 7.7% from one month earlier. Meanwhile, quasi-monetary liabilities rose 1.2%. The sum of these two items, i.e. M2, increased 2.0% to MOP516.2 billion. On an annual basis, M1 and M2 grew 15.7% and 8.0% respectively. The shares of Pataca (MOP), Hong Kong Dollar (HKD), Chinese Yuan (CNY) and United States Dollar (USD) in M2 were 30.9%, 52.9%, 5.0% and 8.7% respectively.

Deposits

Resident deposits increased 2.1% from the preceding month to MOP502.8 billion whereas non-resident deposits dropped 4.2% to MOP264.9 billion. Concurrently, public sector deposits with the banking sector decreased 2.0% to MOP157.0 billion. As a result, total deposits with the banking sector decreased 0.5% from a month earlier to MOP924.7 billion. The shares of MOP, HKD, CNY and USD in total deposits were 21.3%, 47.5%, 5.7% and 22.8% respectively.

Loans

Domestic loans to the private sector increased 0.3% from a month ago to MOP413.9 billion. Among which, MOP122.3 billion was MOP-denominated, MOP268.5 billion was denominated in HKD, MOP2.7 billion was denominated in CNY and MOP17.7 billion was denominated in USD, representing 29.6%, 64.9%, 0.7% and 4.3% of the total respectively. External loans grew 1.5% to MOP373.0 billion; of which, loans denominated in MOP, HKD, CNY and USD accounted for 1.8% (MOP6.6 billion), 28.8% (MOP107.5 billion), 10.6% (MOP39.6 billion) and 52.8% (MOP196.8 billion) respectively.

Operating ratios

At end-October, the loan-to-deposit ratio for the resident sector dropped 0.5 percentage points from the previous month to 62.7%. The ratio for both the resident and non-resident sectors rose 1.2 percentage points to 85.1%. The one-month and three-month current assets to liabilities ratios stayed at relatively high levels of 55.3% and 57.1% respectively. Furthermore, the non-performing loan ratio was 0.2%, virtually unchanged from one month earlier but up slightly by 0.1 percentage point from one year ago.