According to statistics released today by the Monetary Authority of Macao, money supply continued to grow in September. 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 and demand deposits grew 0.3% and 2.5% respectively. M1 thus increased 2.0% from one month earlier. Concurrently, quasi-monetary liabilities rose 0.2%. The sum of these two items, i.e. M2, increased 0.4% to MOP505.8 billion. On an annual basis, M1 and M2 grew 10.6% and 4.9% respectively. The shares of Pataca (MOP), Hong Kong Dollar (HKD), Chinese Yuan (CNY) and United States Dollar (USD) in M2 were 31.1%, 52.2%, 5.8% and 8.6% respectively.

Deposits

Resident deposits increased 0.4% from the preceding month to MOP492.5 billion whereas non-resident deposits dropped 0.9% to MOP276.5 billion. Concurrently, public sector deposits with the banking sector increased 2.5% to MOP160.2 billion. As a result, total deposits with the banking sector increased 0.4% from a month earlier to MOP929.2 billion. The shares of MOP, HKD, CNY and USD in total deposits were 21.1%, 47.7%, 6.4% and 22.1% respectively.

Loans

Domestic loans to the private sector increased 1.0% from a month ago to MOP412.6 billion. Among which, MOP121.2 billion was MOP-denominated, MOP267.0 billion was denominated in HKD, MOP2.5 billion was denominated in CNY and MOP18.6 billion was denominated in USD, representing 29.4%, 64.7%, 0.6% and 4.5% of the total respectively. Analysed by economic sector, “manufacturing industries”, “information technology” and “restaurants, hotels and similar” increased at respective rates of 19.3%, 6.2% and 5.2% compared with a quarter ago, whereas “transport, warehouse and communications” and “gaming” dropped 4.6% and 0.5% respectively.

External loans dropped 0.8% to MOP367.4 billion; of which, loans denominated in MOP, HKD, CNY and USD accounted for 1.8% (MOP6.6 billion), 28.6% (MOP105.2 billion), 11.6% (MOP42.6 billion) and 51.3% (MOP188.5 billion) respectively.

Operating ratios

At end-September, the loan-to-deposit ratio for the resident sector edged up 0.1 percentage point from the previous month to 63.2%. The ratio for both the resident and non-resident sectors dropped 0.2 percentage points to 83.9%. The one-month and three-month current assets to liabilities ratios stayed at relatively high levels of 57.6% and 59.6% 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.