According to statistics released today by the Monetary Authority of Macao, money supply continued to grow in July. As total loans decreased at a faster pace than total deposits, the overall loan-to-deposit ratio of the banking sector dropped slightly from a month earlier. Concurrently, the non-performing loan ratio, an indicator for bank asset quality, kept virtually stable. Money supply Currency in circulation and demand deposits grew 3.2% and 3.6% respectively. M1 thus increased 3.5% from one month earlier. Meanwhile, quasi-monetary liabilities rose 2.5%. The sum of these two items, i.e. M2, increased 2.6% to MOP491.3 billion. On an annual basis, M1 and M2 grew 7.6% and 1.2% respectively. The shares of Pataca (MOP), Hong Kong Dollar (HKD), Chinese Yuan (CNY) and United States Dollar (USD) in M2 were 30.7%, 52.0%, 6.1% and 8.8% respectively. Deposits Resident deposits increased 2.6% from the preceding month to MOP478.0 billion while non-resident deposits dropped 5.8% to MOP275.6 billion. Concurrently, public sector deposits with the banking sector increased 1.5% to MOP157.0 billion. As a result, total deposits with the banking sector decreased 0.3% from a month earlier to MOP910.7 billion. The shares of MOP, HKD, CNY and USD in total deposits were 20.9%, 47.4%, 8.7% and 20.2% respectively. Loans Domestic loans to the private sector decreased 0.3% from a month ago to MOP402.0 billion. Among which, MOP117.9 billion was MOP-denominated, MOP260.8 billion was denominated in HKD, MOP2.3 billion was denominated in CNY and MOP18.2 billion was denominated in USD, representing 29.3%, 64.9%, 0.6% and 4.5% of the total respectively. External loans dropped 0.5% to MOP369.1 billion; of which, loans denominated in MOP, HKD, CNY and USD accounted for 2.0% (MOP7.5 billion), 26.8% (MOP98.8 billion), 13.8% (MOP51.1 billion) and 50.7% (MOP187.2 billion) respectively. Operating ratios At end-July, the loan-to-deposit ratio for the resident sector shrank 1.7 percentage points from the previous month to 63.3%. The ratio for both the resident and non-resident sectors dropped 0.1 percentage point to 84.7%. The one-month and three-month current assets to liabilities ratios stayed at relatively high levels of 59.2% and 57.8% respectively. Furthermore, the non-performing loan ratio was 0.2%, virtually unchanged from one month earlier but up slightly by 0.1 percentage point from one year ago.
