According to statistics released today by the Monetary Authority of Macao, on a monthly basis, money supply M2 decreased slightly in May. As deposits with banks dropped and loans witnessed an increase, the loan-to-deposit ratio rose from a month earlier.

Money supply

Currency in circulation decreased 0.5% whereas demand deposits climbed 6.8%. M1 thus rose 5.7% compared with the previous month. Meanwhile, quasi-monetary liabilities dropped 1.4%. The sum of these two items, i.e. M2, edged down 0.3% to MOP216.1 billion. On an annual basis, M1 and M2 rose 27.2% and 7.1% respectively. The share of Pataca (MOP) in M2 stood at 27.7%, down marginally by 0.1 percentage point over a month ago or 0.4 percentage points from a year earlier. Concurrently, the share of Hong Kong Dollar (HKD) in M2 was 54.2%, down 0.4 percentage points from the previous month but up 0.5 percentage points year-on-year.

Deposits

Resident deposits dropped 0.3% from the previous month to MOP211.1 billion. Of which, MOP deposits and HKD deposits declined at respective rates of 0.8% and 1.1% while other foreign currency deposits grew 2.8%. Concurrently, non-resident deposits decreased by 2.7% to MOP71.3 billion while public sector deposits with the banking sector rose 4.1% to MOP15.5 billion. As a result, total deposits with the banking sector dropped 0.7% from the previous month to MOP297.9 billion. The shares of MOP and HKD in total deposits were 22.2% and 46.8% respectively.

Loans

Domestic loans to the private sector expanded 2.0% in May to MOP108.4 billion. Among which, MOP33.0 billion was MOP-denominated and MOP67.9 billion was denominated in HKD, representing 30.5% and 62.6% of the total respectively. Meanwhile, external loans grew 1.2% to MOP109.3 billion; of which, loans denominated in MOP and HKD accounted for 0.8% (MOP0.9 billion) and 40.3% (MOP44.1 billion) of the total respectively.

Loan-to-deposit ratios

Due to the decline in resident deposits and increase in domestic loans to the private sector, the loan-to deposit ratio for the resident sector grew 1.0 percentage point in a month to 47.8% at end-May 2010. The ratio for both the resident and non-resident sectors was 73.1%, up 1.7 percentage points.