According to statistics released today by the Monetary Authority of Macao, on a monthly basis, money supply M2 witnessed a slight increase in November. As loans grew at a faster pace than deposits, the loan-to-deposit ratio continued to rise.
Money supply
Due to the increases of currency in circulation and demand deposits, M1 rose 5.3% compared with the previous month. Quasi-monetary liabilities edged down by 0.7%. The sum of these two items, i.e. M2, grew slightly by 0.2% to MOP211.4 billion. On an annual basis, M1 and M2 rose 47.2% and 14.2% respectively. The share of Pataca (MOP) in M2 stood at 28.1%. It remained unchanged from the previous month but dropped 0.6 percentage points when compared with a year earlier. Concurrently, the share of Hong Kong Dollar (HKD) in M2 was 54.4%, up 0.6 percentage points month-to-month or 1.8 percentage points year-on-year.
Deposits
Resident deposits edged up 0.2% from the previous month to MOP206.6 billion. Of which, MOP deposits and HKD deposits grew at respective rates of 0.3% and 1.3%, while other foreign currency deposits dropped by 3.5%. Concurrently, non-resident deposits grew 1.3% (to MOP73.7 billion) while public sector deposits with the banking sector dropped 0.4% (to MOP13.3 billion). As a result, total deposits with the banking sector increased 0.4% from the previous month to MOP293.7 billion. The shares of MOP and HKD in total deposits were 22.1% and 45.9% respectively.
Loans
Domestic loans to the private sector expanded 1.7% month-to-month to MOP98.7 billion. Among which, MOP24.8 billion was MOP-denominated and MOP67.2 billion was denominated in HKD, representing 25.1% and 68.0% of the total respectively. Meanwhile, external loans grew 2.1% to MOP81.9 billion; of which, loans denominated in MOP and HKD accounted for 1.2% (MOP1.0 billion) and 47.5% (MOP38.9 billion) of the total respectively.
Loan-to-deposit ratios
As domestic loans to the private sector rose at a faster pace than resident deposits, the loan-to-deposit ratio for the resident sector at end-November 2009 increased by 0.7 percentage points month-to-month to 44.9%. The ratio for residents and non-residents reached 61.5%, up by 0.9 percentage points.
