According to statistics released today by the Monetary Authority of Macao, money supply rebounded in December. As total deposits increased whereas total loans decreased, the overall loan-to-deposit ratio of the banking sector dropped from a month earlier.

Money supply

Currency in circulation and demand deposits grew 0.3% and 1.9% respectively. M1 thus increased 1.6% from one month earlier. Concurrently, quasi-monetary liabilities grew 0.5%. The sum of these two items, i.e. M2, increased 0.7% to MOP472.8 billion. On an annual basis, M1 and M2 dropped 0.3% and 3.0% respectively. The share of Pataca (MOP) in M2 stood at 29.9%, down 0.1 percentage point from a month ago but up 4.3 percentage points from a year earlier. The share of Hong Kong Dollar (HKD) in M2 was 51.5%, up 0.9 percentage points month-to-month or 0.8 percentage points year-on-year. The share of Chinese Yuan (CNY) was 6.7%, down 0.7 percentage points month-to-month or 7.4 percentage points year-on-year. The share of United States Dollar (USD) was 9.6%, down 0.1 percentage point month-to-month but up 2.1 percentage points year-on-year.

Deposits

Resident deposits increased 0.7% from the preceding month to MOP460.8 billion. Of which, MOP, HKD, USD and other foreign currency deposits increased at respective rates of 0.2%, 2.4%, 0.1% and 0.4% whereas CNY deposits decreased 8.3%. Non-resident deposits kept virtually stable at MOP268.0 billion. Public sector deposits with the banking sector increased 5.4% to MOP131.2 billion. As a result, total deposits with the banking sector grew 1.1% from a month earlier to MOP860.0 billion. The shares of MOP, HKD, CNY and USD in total deposits were 20.6%, 44.5%, 9.2% and 22.4% respectively.

Loans

Domestic loans to the private sector kept virtually unchanged from a month ago at MOP389.1 billion. Among which, MOP107.2 billion was MOP-denominated, MOP258.0 billion was denominated in HKD, MOP3.0 billion was denominated in CNY and MOP17.2 billion was denominated in USD, representing 27.5%, 66.3%, 0.8% and 4.4% of the total respectively. Analysed by economic sector, “non-monetary financial institutions”, “gaming” and “restaurants, hotels and similar” increased at respective rates of 16.6%, 14.5% and 8.4% compared with a quarter ago, whereas “wholesale and retail trade”, “information technology” and “manufacturing” dropped 17.5%, 16.1% and 13.3% respectively.

External loans dropped 2.7% to MOP371.6 billion; of which, loans denominated in MOP, HKD, CNY and USD accounted for 1.6% (MOP5.8 billion), 25.9% (MOP96.3 billion), 18.6% (MOP69.0 billion) and 48.5% (MOP180.1 billion) respectively.

Operating ratios

At end-December, the loan-to-deposit ratio for the resident sector dropped 1.1 percentage points from the previous month to 65.7%. The ratio for both the resident and non-resident sectors fell 2.3 percentage points to 88.5%. The one-month and three-month current assets to liabilities ratios stayed at relatively high levels, marked at 59.6% and 59.3% respectively. The non-performing loan ratio, an indicator for bank asset quality, was 0.1%, virtually unchanged from one month earlier and one year ago.