According to statistics released today by the Monetary Authority of Macao, broad money supply continued to grow in June. 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. Concurrently, the non-performing loan ratio, an indicator for bank asset quality, kept virtually stable.

Money supply

Currency in circulation grew 1.7% whereas demand deposits dropped 2.8%. M1 thus decreased 1.8% from one month earlier. Concurrently, quasi-monetary liabilities rose 1.2%. The sum of these two items, i.e. M2, increased 0.8% to MOP478.8 billion. On an annual basis, M1 and M2 dropped 9.9% and 2.0% respectively. The shares of Pataca (MOP), Hong Kong Dollar (HKD), Chinese Yuan (CNY) and United States Dollar (USD) in M2 were 30.5%, 51.5%, 6.5% and 9.1% respectively.

Deposits

Resident deposits increased 0.8% from the preceding month to MOP466.0 billion while non-resident deposits grew 6.7% to MOP292.7 billion. Concurrently, public sector deposits with the banking sector increased 1.2% to MOP154.7 billion. As a result, total deposits with the banking sector increased 2.7% from a month earlier to MOP913.3 billion. The shares of MOP, HKD, CNY and USD in total deposits were 20.1%, 47.4%, 8.9% and 20.7% respectively.

Loans

Domestic loans to the private sector increased 1.4% from a month ago to MOP403.3 billion. Among which, MOP116.7 billion was MOP-denominated, MOP262.4 billion was denominated in HKD, MOP2.4 billion was denominated in CNY and MOP19.1 billion was denominated in USD, representing 28.9%, 65.1%, 0.6% and 4.7% of the total respectively. Analysed by economic sector, “manufacturing industries”, “non-monetary financial institutions” and “wholesale and retail trade” increased at respective rates of 17.2%, 17.0% and 6.9% compared with a quarter ago, whereas “transport, warehouse and communications” and “education” dropped 8.4% and 2.5% respectively.

External loans grew 0.9% to MOP371.0 billion; of which, loans denominated in MOP, HKD, CNY and USD accounted for 2.0% (MOP7.3 billion), 27.0% (MOP100.1 billion), 15.3% (MOP56.7 billion) and 49.1% (MOP182.2 billion) respectively.

Operating ratios

At end-June, the loan-to-deposit ratio for the resident sector rose 0.3 percentage points from the previous month to 65.0%. The ratio for both the resident and non-resident sectors dropped 1.3 percentage points to 84.8%. The one-month and three-month current assets to liabilities ratios stayed at relatively high levels of 54.4% and 56.9% respectively. Furthermore, the non-performing loan ratio was 0.1%, virtually unchanged from one month earlier and one year ago.