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

Money supply

Currency in circulation and demand deposits grew 0.1% and 2.1% respectively. M1 thus increased 1.7% from one month earlier. Concurrently, quasi-monetary liabilities rose 0.2%. The sum of these two items, i.e. M2, increased 0.4% to MOP465.3 billion. On an annual basis, M1 and M2 dropped 2.8% and 5.7% respectively. The share of Pataca (MOP) in M2 stood at 30.6%, down 0.1 percentage point month-to-month but up 3.8 percentage points year-on-year. The share of Hong Kong Dollar (HKD) in M2 was 51.4%, up 0.2 percentage points month-to-month or 0.5 percentage points year-on-year. The share of Chinese Yuan (CNY) was 6.2%, up 0.1 percentage point month-to-month but down 5.2 percentage points year-on-year. The share of United States Dollar (USD) was 9.4%, down 0.2 percentage points month-to-month but up 0.6 percentage points year-on-year.

Deposits

Resident deposits increased 0.4% from the preceding month to MOP452.6 billion. Of which, MOP deposits remained virtually stable whereas USD deposits decreased 1.2%. Meanwhile, HKD, CNY and other foreign currency deposits increased at respective rates of 0.7%, 1.2% and 1.8%. Non-resident deposits dropped 1.9% to MOP283.8 billion. Public sector deposits with the banking sector increased 1.4% to MOP152.9 billion. As a result, total deposits with the banking sector dropped 0.2% from a month earlier to MOP889.3 billion. The shares of MOP, HKD, CNY and USD in total deposits were 20.6%, 48.4%, 8.1% and 19.8% respectively.

Loans

Domestic loans to the private sector increased 0.6% from a month ago to MOP397.9 billion. Among which, MOP114.6 billion was MOP-denominated, MOP259.4 billion was denominated in HKD, MOP2.4 billion was denominated in CNY and MOP18.5 billion was denominated in USD, representing 28.8%, 65.2%, 0.6% and 4.6% of the total respectively. On the other hand, external loans grew 0.2% to MOP367.8 billion; of which, loans denominated in MOP, HKD, CNY and USD accounted for 1.8% (MOP6.7 billion), 27.2% (MOP100.0 billion), 15.3% (MOP56.3 billion) and 48.8% (MOP179.4 billion) respectively.

Operating ratios

At end-May, the loan-to-deposit ratio for the resident sector kept virtually stable from the previous month at 65.7%. The ratio for both the resident and non-resident sectors rose 0.5 percentage points to 86.1%. The one-month and three-month current assets to liabilities ratios stayed at relatively high levels of 55.9% and 55.8% 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.