According to statistics released today by the Monetary Authority of Macao, on a monthly basis, money supply M2 witnessed a decline after a continuous growth for five straight months. As deposits with banks dropped slightly and total loans saw an increase, the loan-to-deposit ratio rose from a month earlier. Money supply
Currency in circulation increased 7.1% whereas demand deposits decreased 8.6%. M1 thus dropped significantly by 6.2% compared with the previous month. Meanwhile, quasi-monetary liabilities fell 1.7%. The sum of these two items, i.e. M2, decreased 2.4% to MOP210.2 billion. On an annual basis, M1 and M2 rose 20.2% and 9.2% respectively. The share of Pataca (MOP) in M2 stood at 29.3%, up 0.5 percentage points over a month ago or 0.3 percentage points from a year earlier. Concurrently, the share of Hong Kong Dollar (HKD) in M2 was 52.9%, down 1.3 percentage points month-to-month but up 0.5 percentage points year-on-year. Deposits
Resident deposits dropped 2.7% from the previous month to MOP204.8 billion. Of which, MOP deposits and HKD deposits declined at respective rates of 1.3% and 4.7% while other foreign currency deposits rose 1.7%. Concurrently, non-resident deposits increased by 5.5% to MOP72.9 billion and public sector deposits with the banking sector also rose 1.5% to MOP15.5 billion. As a result, total deposits with the banking sector dropped 0.5% from the previous month to MOP293.2 billion. The shares of MOP and HKD in total deposits were 23.2% and 45.4% respectively.
Loans
Domestic loans to the private sector expanded 1.9% in February to MOP104.6 billion. Among which, MOP29.3 billion was MOP-denominated and MOP68.8 billion was denominated in HKD, representing 28.0% and 65.8% of the total respectively. Meanwhile, external loans grew 6.2% to MOP101.2 billion; of which, loans denominated in MOP and HKD accounted for 0.9% (MOP0.9 billion) and 41.6% (MOP42.1 billion) of the total respectively. Loan-to-deposit ratios
Due to the decline in resident deposits and increase in domestic loans to the private sector, the loan-to-deposit ratio for the resident sector grew 2.0 percentage points in a month to 47.5% at end-February 2010. The ratio for both the resident and non-resident sectors reached 70.2%, up 3.1 percentage points from the previous month.
