According to statistics released today by the Monetary Authority of Macao, on a monthly basis, money supply M2 witnessed a decline in November. As deposits with banks dropped and total loans increased, the loan-to-deposit ratio rose from a month earlier.

Money supply

Currency in circulation and demand deposits increased 0.5% and 4.1% respectively. M1 thus grew 3.5% when compared with the previous month. Meanwhile, as quasi-monetary liabilities fell 2.5%, M2 decreased 1.7%, amounting to MOP240.5 billion. On an annual basis, M1 and M2 rose 4.6% and 13.7% respectively. The share of Pataca (MOP) in M2 stood at 28.2%, up 0.7 percentage points over a month ago or 0.1 percentage point from a year earlier. The share of Hong Kong Dollar (HKD) in M2 was 54.8%, down 1.1 percentage points month-to-month but up 0.3 percentage points year-on-year.

Deposits

Resident deposits dropped after growing for five straight months. Their value decreased 1.7% from the previous month to MOP235.0 billion. Of which, MOP deposits and other foreign currency deposits increased at respective rates of 0.9% and 0.4%, while HKD deposits fell 3.6%. Concurrently, non-resident deposits grew 2.2% to MOP77.8 billion and public sector deposits with the banking sector decreased 4.8% to MOP20.5 billion. As a result, total deposits with the banking sector dropped 1.0% from a month earlier to MOP333.3 billion. The shares of MOP and HKD in total deposits were 23.4% and 47.3% respectively.

Loans

Domestic loans to the private sector increased 1.8% on a monthly basis to MOP124.3 billion. Among which, MOP37.1 billion was MOP-denominated and MOP79.6 billion was denominated in HKD, representing 29.8% and 64.0% of the total respectively. Meanwhile, external loans decreased slightly by 0.2% to MOP114.1 billion; of which, loans denominated in MOP and HKD accounted for 0.4% (MOP0.4 billion) and 41.4% (MOP47.2 billion) of the total respectively.

Loan-to-deposit ratios

Due to the decline in resident deposits (including public sector deposits) and increase in domestic loans to the private sector, the loan-to-deposit ratio for the resident sector at end-November 2010 grew 1.8 percentage points month-to-month to 48.7%. The ratio for both the resident and non-resident sectors reached 71.5%, up 1.3 percentage points from the previous month.