According to statistics released today by the Monetary Authority of Macao, broad money supply continued to grow in November. As total deposits increased at a faster pace than total loans, the overall loan-to-deposit ratio of the banking sector dropped from a month earlier.

Money supply

Currency in circulation grew 2.8% while demand deposits dropped 1.0%. M1 thus decreased 0.4% from one month earlier. Concurrently, quasi-monetary liabilities rose 3.3%. The sum of these two items, i.e. M2, increased by 2.8% to MOP370.3 billion. On an annual basis, M1 and M2 rose 10.6% and 22.6% respectively. The share of Pataca (MOP) in M2 stood at 24.4%, down 0.5 percentage points from a month ago or 0.6 percentage points from a year earlier. The share of Hong Kong Dollar (HKD) in M2 was 55.1%, down 0.9 percentage points month-to-month but up 0.2 percentage points year-on-year.

Deposits

Resident deposits rose 2.8% from the preceding month to MOP362.7 billion. Of which, MOP deposits, HKD deposits and other foreign currency deposits increased at respective rates of 0.7%, 1.3% and 10.1%. Non-resident deposits increased 5.8% to MOP131.2 billion while public sector deposits with the banking sector edged down 0.1% to MOP42.1 billion. As a result, total deposits with the banking sector rose 3.3% from a month earlier to MOP536.1 billion. The shares of MOP and HKD in total deposits were 20.4% and 46.6% respectively.

Loans

Domestic loans to the private sector increased 3.5% from a month ago to MOP196.0 billion. Among which, MOP59.8 billion was MOP-denominated and MOP119.9 billion was denominated in HKD, representing 30.5% and 61.2% of the total respectively. External loans also rose 0.2% to MOP212.5 billion; of which, loans denominated in MOP and HKD accounted for 0.9% (MOP1.9 billion) and 24.9% (MOP53.0 billion) respectively.

Loan-to-deposit ratios

As domestic loans to the private sector grew faster than resident deposits, the loan-to-deposit ratio for the resident sector at end-November rose 0.4 percentage points month-to-month to 48.4%. The ratio for both the resident and non-resident sectors was 76.2%, down 1.2 percentage points from end-October.