According to statistics released today by the Monetary Authority of Macao, on a monthly basis, money supply M2 continued to increase in July. As deposits with banks rose at a faster pace than loans, the loan-to-deposit ratio edged down from a month ago.

Money supply

Driven by the increases of currency in circulation and demand deposits, M1 rose 6.6% month-to-month. Meanwhile, quasi-monetary liabilities went up by 1.9%. The sum of these two items, i.e. M2, rose 2.5% to MOP208.5 billion. On an annual basis, M1 and M2 rose 31.5% and 11.8% respectively. The share of Pataca (MOP) in M2 stood at 27.8%, down 0.7 percentage points over a month ago or 0.4 percentage points over a year earlier. Concurrently, the share of Hong Kong Dollar (HKD) in M2 was 54.5%, up 0.8 percentage points month-to-month or 2.1 percentage points year-on-year.

Deposits

Resident deposits rose by 2.6% from the previous month to MOP203.8 billion. Of which, MOP deposits fell marginally by 0.1% while HKD deposits and other foreign currency deposits grew at respective rates of 4.0% and 2.1%. On the other hand, non-resident deposits and public sector deposits with the banking sector rose 1.0% (to MOP72.4 billion) and 4.0% (to MOP13.4 billion) respectively. As a result, total deposits with the banking sector edged up 2.2% from the previous month to MOP289.5 billion. The shares of MOP and HKD in total deposits were 22.1% and 46.2% respectively.

Loans

Domestic loans to the private sector grew slightly by 0.3% month-to-month to MOP93.4 billion. Among which, MOP20.4 billion was MOP-denominated and MOP66.8 billion was denominated in HKD, representing 21.8% and 71.5% of the total respectively. Meanwhile, external loans rose by 4.0% to MOP64.4 billion; of which, loans denominated in MOP and HKD accounted for 1.6% and 55.1% respectively of the total, at values of MOP1.0 billion and MOP35.5 billion.

Loan-to-deposit ratios

As resident deposits and public sector deposits with the banking sector grew faster than domestic loans to the private sector, the loan-to-deposit ratio for the resident sector at end-July 2009 dropped by 1.0 percentage point month-to-month to 43.0%. The ratio for both the resident and non-resident sectors stood at 54.5%, down 0.3 percentage points.