According to statistics released today by the Monetary Authority of Macao, broad money supply continued to grow in November.  As total deposits increased whereas total loans decreased, the overall loan-to-deposit ratio of the banking sector dropped from a month ago. Concurrently, the non-performing loan ratio, an indicator for bank asset quality, remained virtually unchanged.

Money supply

Currency in circulation grew 0.3% whereas demand deposits dropped 4.4%. M1 thus decreased 3.5% from one month earlier.  On the other hand, quasi-monetary liabilities rose 1.3%.  The sum of these two items, i.e. M2, increased 0.6% to MOP519.4 billion. On an annual basis, M1 and M2 grew 11.8% and 10.6% respectively.  The shares of Pataca (MOP), Hong Kong Dollar (HKD), Chinese Yuan (CNY) and United States Dollar (USD) in M2 were 30.8%, 53.8%, 4.4% and 8.7% respectively.

Deposits

Resident deposits increased 0.6% from the preceding month to MOP506.0 billion whereas non-resident deposits dropped 0.1% to MOP264.7 billion. In addition, public sector deposits with the banking sector increased 2.0% to MOP160.2 billion.  As a result, total deposits with the banking sector increased 0.7% from a month earlier to MOP930.8 billion. The shares of MOP, HKD, CNY and USD in total deposits were 21.1%, 47.0%, 5.0% and 24.1% respectively.Loans

Domestic loans to the private sector increased 0.3% from a month ago to MOP415.0 billion. Among which, MOP123.0 billion was MOP-denominated, MOP269.3 billion was denominated in HKD, MOP3.4 billion was denominated in CNY and MOP17.7 billion was denominated in USD, representing 29.6%, 64.9%, 0.8% and 4.3% of the total respectively.  External loans fell 0.5% to MOP371.3 billion; of which, loans denominated in MOP, HKD, CNY and USD accounted for 1.8% (MOP6.7 billion), 29.2% (MOP108.4 billion), 10.1% (MOP37.6 billion) and 53.0% (MOP196.7 billion)  respectively.

Operating ratios

At end-November, the loan-to-deposit ratio for the resident sector dropped 0.4 percentage points from the previous month to 62.3%.  The ratio for both the resident and non-resident sectors fell 0.6 percentage points to 84.5%. The one-month and three-month current assets to liabilities ratios stayed at relatively high levels of 57.6% and 56.5% respectively.  Furthermore, the non-performing loan ratio was 0.3%, virtually unchanged from one month earlier but up slightly by 0.1 percentage point from one year ago.