Local deposits rise to MOP877 billion in January

Total deposits with local banks registered a month-on-month increase of 2 per cent to MOP876.8 billion (US$109.6 billion) for January, official data released last week by the Monetary Authority of Macao (AMCM) reveals. During the first month of the year, Hong Kong Dollars (HKD) accounted for 43.4 per cent of the total deposits that local banks received, followed by deposits of Patacas (MOP), Renminbi (CNY) and US Dollars (USD), amounting to 20.8 per cent, 8.7 per cent and 24 per cent of the total, respectively. Deposits from local residents totalled MOP460.7 billion in the month, which remained stable compared to December 2015. Meanwhile, non-resident deposits jumped by 6.7 per cent month-on-month to MOP286.1billion but public sector deposits decreased by 0.9 per cent month-on-month to MOP130 billion. On the other hand, local banks approved some MOP389.3 billion of domestic loans to the private sector in January, which is similar to that of December 2015. Some 66.5 per cent or MOP258.7 billion of such loans were denominated in HKD, whilst another 27.9 per cent was MOP-denominated, amounting to MOP108.6 billion. External loans dropped 1.9 per cent to MOP364.5 billion in the month, of which 48 per cent, or some MOP175.1 billion, was denominated in USD. As at the end of January, the loan-to-deposit ratio for the resident sector grew 0.2 percentage points to 65.9 per cent month-on-month. The ratio for both the resident and non-resident sectors dropped 2.5 percentage points to 86 per cent. Meanwhile, currency in circulation and demand deposits grew 8.8 per cent and 3.5 per cent month-on-month in January, respectively. Money supply (M1) thus increased 4.5 per cent from one month earlier while quasi-monetary liabilities dropped 0.4 per cent month-on-month. Hence, M2, the sum of these two items, increased slightly month-on-month by 0.2 per cent to MOP473.8 billion.