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

Money supply

Currency in circulation and demand deposits grew 0.3% and 1.6% respectively. M1 thus increased 1.4% from one month earlier. Concurrently, quasi-monetary liabilities rose 2.2%. The sum of these two items, i.e. M2, increased 2.1% to MOP483.6 billion. On an annual basis, M1 and M2 rose 14.4% and 22.0% respectively. The share of Pataca (MOP) in M2 stood at 24.0%, up 0.1 percentage point from a month ago but down 0.6 percentage points from a year earlier. The share of Hong Kong Dollar (HKD) in M2 was 49.4%, up 0.1 percentage point month-to-month but down 4.3 percentage points year-on-year.

Deposits

Resident deposits increased 2.1% from the preceding month to MOP473.9 billion. Of which, MOP deposits, HKD deposits and other foreign currency deposits grew at respective rates of 2.8%, 2.3% and 1.2%. Non-resident deposits rose 1.4% to MOP211.8 billion. Public sector deposits with the banking sector also increased 0.5% to MOP88.0 billion. As a result, total deposits with the banking sector grew 1.7% from a month earlier to MOP773.7 billion. The shares of MOP and HKD in total deposits were 18.4% and 40.4% respectively.

Loans

Domestic loans to the private sector increased 3.0% from a month ago to MOP308.5 billion. Among which, MOP86.4 billion was MOP-denominated and MOP196.4 billion was denominated in HKD, representing 28.0% and 63.7% of the total respectively. Analysed by economic sector, “non-monetary financial institutions”, “exhibition and conference” and “manufacturing industries” increased at respective rates of 30.7%, 25.6% and 17.2% compared with a quarter ago, whereas “information technology”, “education” and “agriculture and fisheries” dropped 4.5%, 1.9% and 1.5% respectively.

External loans increased 2.5% to MOP324.8 billion; of which, loans denominated in MOP and HKD accounted for 1.7% (MOP5.4 billion) and 21.6% (MOP70.0 billion) respectively.

Loan-to-deposit ratios

The loan-to-deposit ratio for the resident sector at end-June rose 0.6 percentage points from the previous month to 54.9%. The ratio for both the resident and non-resident sectors also grew by 0.8 percentage points to 81.9%.