Loans up double-digits y-o-y in October

Local banks’ approval of domestic loans to the private sector registered a year-on-year increase of 17.3 per cent in October, in addition to a year-on-year jump of 11.2 per cent apropos the granting of external loans, according to the latest data released by the Monetary Authority of Macau (AMCM).
In October, local banks granted a total of MOP388.8 billion-worth (US$48.6 billion) of domestic loans to the city’s private sector.
Although the amount represents a notable growth compared to the same period last year, it represented a drop of 0.4 per cent month-on-month from MOP390.2 billion.
Of the total, 65.5 per cent was denominated in Hong Kong dollars (HKD), amounting to MOP254.6 billion, followed by Patacas (MOP), which occupied 27.5 per cent, or MOP105.6 billion. In addition, renminbi (CNY) and US dollar (USD)-denominated domestic loans accounted for 0.8 per cent and 5.9 per cent of the total, respectively.
Meanwhile, external loans approved by the sector in October posted a month-on-month decrease of 0.3 per cent to MOP387.1 billion. Nearly half of the total external loans, 48.7 per cent of the total, were USD-denominated, amounting to MOP188.5 billion. MOP, HKD and CNY accounted for 1.4 per cent (MOP5.5 billion), 24.3 per cent (MOP94.0 billion) and 20. 2 per cent (78 billion) of the total, respectively.
As at the end of October, the loan-to-deposit ration for the resident sector grew 0.7 percentage points from September to 66 per cent, according to AMCM. Meanwhile, the one-month and three-month current assets to liabilities ratios stayed at relatively high levels, marked at 61.1 per cent and 60 per cent respectively.
Total deposits drop
On the other hand, total deposits with the local banking sector dropped 0.5 per cent month-on-month to MOP863.2 billion. The shares of MOP, HKD, CNY and USD in total deposits were 19.6 per cent, 41.7 per cent, 10.6 per cent and 24.7 per cent, respectively.
In the month, resident deposits registered a decrease of 2.7 per cent year-on-year, or a drop of 1 per cent month-on-month, amounting to MOP466.1 billion. The decrease is primarily due to the drop in residents’ time deposits.
Moreover, according to AMCM, resident deposits of CNY registered a sharp decline of 17.2 per cent compared to September, while MOP and HKD denominated-deposits increased 1.5 per cent and 2.1 per cent, respectively.
Non-residents’ deposits with local banks rose 1.5 per cent to MOP273.9 billion. On a year-on-year comparison, the amount represents a surge of 17.2 per cent. However, public sector deposits decreased 3 per cent to MOP123.1 billion in the month.
As at the end of October, currency in circulation had increased by 1.7 per cent month-on-month. Money supply (M1) and quasi-monetary liabilities grew 3 per cent and dropped 1.4 per cent from September.
Hence, M2, the sum of the two items, posted a slight decline of 0.9 per cent to MOP478.1 billion.