According to statistics released today by the Monetary Authority of Macao, broad money supply continued to fall in October with a stable share of patacas.  Meanwhile, resident deposits dropped from a month ago whereas loans to residents posted an increase.

Money supply

Currency in circulation rose 0.4% whereas demand deposits dropped 1.1%. M1 thus decreased 0.8% from one month earlier.  Meanwhile, quasi-monetary liabilities fell 0.7%.  The sum of these two items, i.e. M2, decreased 0.7% to MOP685.6 billion.  On an annual basis, M1 dropped 10.8% whereas M2 grew 1.8%.  The shares of pataca (MOP), Hong Kong dollar (HKD), renminbi (RMB) and United States dollar (USD) in M2 were 34.1%, 47.2%, 4.6% and 12.2% respectively.

Deposits

Resident deposits went down by 0.7% from the preceding month to MOP667.0 billion while non-resident deposits remained virtually stable at MOP322.3 billion.  Meanwhile, public sector deposits with the banking sector dropped 0.3% to MOP262.3 billion.  As a result, total deposits in the banking sector decreased 0.5% from a month earlier to MOP1,251.6 billion.  The shares of MOP, HKD, RMB and USD in total deposits were 19.1%, 47.7%, 5.1% and 24.8% respectively.

Loans

Domestic loans to the private sector rose 0.5% from a month ago to MOP542.3 billion while external loans also grew 4.1% to MOP685.7 billion.  As a result, total loans to the private sector went up by 2.5% from a month earlier to MOP1,228.0 billion.  The shares of MOP, HKD, RMB and USD in total loans were 16.1%, 41.5%, 11.3% and 28.2% respectively.

Operating ratios

At end-October, the loan-to-deposit ratio for the resident sector rose from 57.7% at end-September to 58.4%.  Meanwhile, the ratio for both the resident and non-resident sectors increased from 95.3% to 98.1%.  The one-month and three-month current assets to liabilities ratios stood at 58.5% and 57.2% respectively.  Concurrently, the non-performing loan ratio decreased from 0.40% at end-September to 0.38%.