According to statistics released today by the Monetary Authority of Macao, money supply continued to grow in August. Driven by a faster increase in resident deposits, the overall loan-to-deposit ratio of the banking sector dropped from a month earlier.

Money supply

Currency in circulation and demand deposits rose 0.9% and 3.3% respectively. M1 thus increased 2.9% from one month earlier. Concurrently, quasi-monetary liabilities grew 5.6%. The sum of these two items, i.e. M2, increased 5.2% to MOP348.1 billion. On an annual basis, M1 and M2 rose 20.9% and 24.8% respectively. The share of Pataca (MOP) in M2 stood at 24.6%, down 1.1 percentage points over a month ago or 1.0 percentage point from a year earlier. The share of Hong Kong Dollar (HKD) in M2 was 55.5%, up 0.6 percentage points month-to-month or 2.1 percentage points year-on-year.

Deposits

Resident deposits grew 5.3% from the preceding month to MOP341.0 billion. Of which, MOP deposits, HKD deposits and other foreign currency deposits increased at respective rates of 0.7%, 6.3% and 8.2%. Non-resident deposits dropped 8.8% to MOP115.9 billion while public sector deposits with the banking sector increased 1.5% to MOP41.0 billion. As a result, total deposits with the banking sector rose 1.4% from a month earlier to MOP497.9 billion. The shares of MOP and HKD in total deposits were 21.1% and 47.5% respectively.

Loans

Domestic loans to the private sector increased 0.6% on a monthly basis to MOP187.6 billion. Among which, MOP52.1 billion was MOP-denominated and MOP119.4 billion was denominated in HKD, representing 27.8% and 63.6% of the total respectively. On the other hand, external loans rose 1.2% to MOP215.7 billion; of which, loans denominated in MOP and HKD accounted for 0.6% (MOP1.4 billion) and 24.1% (MOP52.0 billion) respectively.

Loan-to-deposit ratios

As resident deposits grew faster than domestic loans to the private sector, the loan-to-deposit ratio for the resident sector at end-August fell 2.1 percentage points month-to-month to 49.1%. The ratio for both the resident and non-resident sectors was 81.0%, down 0.4 percentage points from end-July.