The banking industry of Macau remained robust and resilient last year albeit the local economic downturn caused by the Covid-19 pandemic, the chairman of the Monetary Authority of Macau (AMCM), Chan Sau San, indicated today (Friday).
The head of the city’s de-facto central bank made the remarks today during the Chinese New Year luncheon organised by the Macau Association of Banks.
The value of assets among local lenders totalled MOP2.22 trillion (US$277.9 billion) by the end of 2020, rising 10.2 per cent year-on-year, while the operating profits of the sector reached MOP17.1 billion, representing an insignificant rise from MOP17 billion by the end of 2019, according to AMCM.
“The capital adequacy ratio and liquidity [of the local banking sector] has remained robust… while the labour force of the sector has kept growing despite the hike in the local unemployment rate,” Chan remarked. “These all economic data underscore the resilience and solid foundation of the sector.”
Li Guang, chairman of the Macau Association of Banks and general manager of Bank of China Macau Branch, also highlighted in the luncheon that the banking industry maintained a good shape last year despite being “deeply impacted” by the pandemic.
Looking forward, Chan said as Macau is expected to achieve economic growth in “double digits” this year — after plunging 56.3 per cent last year — AMCM would work with the industry to create a better environment for the sector in terms of infrastructure, legal framework, and talent cultivation.
The de-facto central bank would input more resources this year to improve the local digital financial infrastructure, namely optimising the so-called “Simple Pay” integrated payment system, he added.
The first phase of “Simple Pay”, in which merchants can use one integrated payment terminal rather than multiple devices to accept different digital payment means, was rolled out this February.
The second phase — in which merchants will be given a unique QR code, and customers can scan the code and choose the digital payment means they wish for transactions — is expected to be launched by the end of this month.
But Chan did not address directly today whether Macau could become one of the cities for the pilot test of digital yuan (DCEP), the central bank digital currency backed by the Chinese authorities.
Announcing last year the digital yuan would be first tested in four major Chinese cities, namely, Shenzhen, Suzhou, Chengdu and Xiong’an, as well as the venues of the 2022 Winter Olympics in Beijing and nearby Hebei province, the central government has signalled the possibilities of tests in the Guangdong-Hong Kong-Macau Greater Bay Area.
