According to statistics released today by the Monetary Authority of Macao, on a monthly basis, money supply M2 continued to grow in September. As deposits grew at a faster pace than loans, the loan-to-deposit ratio dropped slightly from a month earlier.
Money supply
Currency in circulation grew 3.4% whereas demand deposits dropped 2.6%. M1 thus decreased 1.7% when compared with the previous month. Meanwhile, as quasi-monetary liabilities rose 3.7%, M2 grew at a faster pace of 2.9%, amounting to MOP237.0 billion. On an annual basis, M1 and M2 rose 18.8% and 13.7% respectively. The share of Pataca (MOP) in M2 stood at 28.5%, down 0.2 percentage points over a month ago or up 0.3 percentage points from a year earlier. Concurrently, the share of Hong Kong Dollar (HKD) in M2 was 54.6%, up 0.7 percentage points month-to-month or 1.2 percentage points year-on-year.
Deposits
Resident deposits grew at a faster pace when compared with the preceding month. The value increased 2.8% from the previous month to MOP231.5 billion. Of which, MOP deposits and HKD deposits increased at respective rates of 2.2% and 4.1%, while other foreign currency deposits dropped slightly by 0.2%. Concurrently, non-resident deposits grew 2.1% to MOP72.9 billion and public sector deposits with the banking sector increased 0.9% to MOP20.2 billion. As a result, total deposits with the banking sector grew 2.5% from the previous month to MOP324.7 billion. The shares of MOP and HKD in total deposits were 24.1% and 46.5% respectively.
Loans
Domestic loans to the private sector grew 2.4% in September to MOP119.6 billion. Among which, MOP36.6 billion was MOP-denominated and MOP74.1 billion was denominated in HKD, representing 30.6% and 62.0% of the total respectively. Loans to “gaming” and “restaurants, hotels and similar” increased quarter-to-quarter at respective rates of 72.1% and 31.5% whereas those to “transport, warehouse and communications” dropped 8.5%. Meanwhile, external loans increased 2.3% to MOP113.3 billion; of which, loans denominated in MOP and HKD accounted for 0.7% (MOP0.7 billion) and 41.4% (MOP46.9 billion) respectively.
Loan-to-deposit ratios
As resident deposits (including public sector deposits) rose at a faster pace than domestic loans to the private sector, the loan-to-deposit ratio for the resident sector at end-September 2010 dropped slightly by 0.1 percentage point month-to-month to 47.5%. The ratio for both the resident and non-resident sectors stood at 71.7%, down simultaneously by 0.1 percentage point from the previous month.
