According to statistics released today by the Monetary Authority of Macao, money supply continued to drop in September. As loans increased whereas deposits decreased, the loan-to-deposit ratio of the banking sector rose from a month earlier.

Money supply

Currency in circulation grew 0.4% whereas demand deposits dropped 4.5%. M1 thus decreased 3.7% from one month earlier. Concurrently, quasi-monetary liabilities grew 0.1%. The sum of these two items, i.e. M2, decreased 0.4% to MOP487.4 billion. On an annual basis, M1 and M2 rose 8.8% and 14.2% respectively. The share of Pataca (MOP) in M2 stood at 25.2%, up 0.4 percentage points from a month ago or 0.9 percentage points from a year earlier. The share of Hong Kong Dollar (HKD) in M2 was 49.5%, down 0.9 percentage points month-to-month or 3.9 percentage points year-on-year.

Deposits

Resident deposits decreased 0.4% from the preceding month to MOP477.3 billion. Of which, MOP deposits and other foreign currency deposits increased at respective rates of 1.3% and 1.6% whereas HKD deposits dropped 2.1%. Non-resident deposits rose 1.1% to MOP234.8 billion. Public sector deposits with the banking sector decreased 2.8% to MOP88.0 billion. As a result, total deposits with the banking sector dropped 0.2% from a month earlier to MOP800.1 billion. The shares of MOP and HKD in total deposits were 18.3% and 41.2% respectively.

Loans

Domestic loans to the private sector increased 1.9% from a month ago to MOP328.9 billion. Among which, MOP91.1 billion was MOP-denominated and MOP209.7 billion was denominated in HKD, representing 27.7% and 63.8% of the total respectively. Analysed by economic sector, “information technology”, “non-monetary financial institutions” and “restaurants, hotels and similar” increased at respective rates of 132.3%, 87.4% and 39.5% compared with a quarter ago, whereas “transport, warehouse and communications”, “electricity, gas and water” and “mining industries” dropped 12.2%, 6.2% and 3.9% respectively.

External loans rose 1.0% to MOP346.3 billion; of which, loans denominated in MOP and HKD accounted for 1.3% (MOP4.5 billion) and 23.3% (MOP80.8 billion) respectively.

Loan-to-deposit ratios

The loan-to-deposit ratio for the resident sector at end-September rose 1.5 percentage points from the previous month to 58.2%. The ratio for both the resident and non-resident sectors also grew by 1.4 percentage points to 84.4%.

Annex Table

5 November 2014

Detailed Monetary and Financial Statistics are available in the latest issue of Monthly Bulletin of Monetary Statistics on AMCM Internet Website. (http://www.amcm.gov.mo/publication/Publication.htm)