According to statistics released today by the Monetary Authority of Macao, money supply retreated in April. As total deposits dropped, the overall loan-to-deposit ratio of the banking sector rose from a month earlier. Money supply Currency in circulation grew 0.1% while demand deposits dropped 14.1%. M1 thus decreased 11.3% from one month earlier. Concurrently, quasi-monetary liabilities rose 0.2%. The sum of these two items, i.e. M2, decreased 1.3% to MOP463.7 billion. On an annual basis, M1 and M2 dropped 5.7% and 5.8% respectively. The share of Pataca (MOP) in M2 stood at 30.7%, up 0.4 percentage points month-to-month or 3.8 percentage points year-on-year. The share of Hong Kong Dollar (HKD) in M2 was 51.2%, down 0.5 percentage points month-to-month but unchanged from a year ago. The share of Chinese Yuan (CNY) was 6.1%, up 0.2 percentage points month-to-month but down 5.5 percentage points year-on-year. The share of United States Dollar (USD) was 9.5%, down 0.2 percentage points month-to-month but up 1.4 percentage points year-on-year. Deposits Resident deposits decreased 1.4% from the preceding month to MOP451.0 billion. Of which, MOP, CNY and other foreign currency deposits increased at respective rates of 0.1%, 2.6% and 0.6% whereas HKD and USD deposits decreased 2.3% and 3.5% respectively. Non-resident deposits kept virtually stable at MOP289.4 billion. Public sector deposits with the banking sector increased 1.7% to MOP150.8 billion. As a result, total deposits with the banking sector dropped 0.4% from a month earlier to MOP891.2 billion. The shares of MOP, HKD, CNY and USD in total deposits were 20.5%, 47.0%, 7.9% and 21.5% respectively. Loans Domestic loans to the private sector increased 0.4% from a month ago to MOP395.5 billion. Among which, MOP113.3 billion was MOP-denominated, MOP259.6 billion was denominated in HKD, MOP2.5 billion was denominated in CNY and MOP17.1 billion was denominated in USD, representing 28.6%, 65.6%, 0.6% and 4.3% of the total respectively. On the other hand, external loans dropped 0.4% to MOP367.1 billion; of which, loans denominated in MOP, HKD, CNY and USD accounted for 1.7% (MOP6.3 billion), 26.2% (MOP96.1 billion), 16.5% (MOP60.4 billion) and 48.3% (MOP177.5 billion) respectively. Operating ratios At end-April, the loan-to-deposit ratio for the resident sector grew 0.7 percentage points from the previous month to 65.7%. The ratio for both the resident and non-resident sectors rose 0.4 percentage points to 85.6%. The one-month and three-month current assets to liabilities ratios stayed at relatively high levels of 61.3% and 58.2% 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.
