According to statistics released today by the Monetary Authority of Macao, new SME lending approved by Macao banks resumed its growth in the first half of 2011. Concurrently, the utilisation of SME credit in proportion to the credit limit approved by banks continued to rise.

New Lending Approved

In the first half of 2011, new SME credit limit approved by Macao banks totalled MOP10.9 billion, 27.8% up from the second half of 2010 or 5.5% up from the same period of 2010. The collateralised ratio, which indicates the proportion of credit limit with tangible assets pledged, was 53.7%, down by 10.1 percentage points when compared with the last survey period but up by 17.4 percentage points when compared with the same period of 2010.

Credit Utilisation

As at end-June 2011, the outstanding value of total SME loans reached MOP30.6 billion, which represented a growth of 22.8% from end-December 2010 or 36.5% from a year earlier. When compared with end-December 2010, SME loans to “manufacturing industries”, “wholesale and retail trade”, “restaurants, hotels and similar activities” and “construction and public works” increased at respective rates of 41.2%, 37.5%, 34.3% and 14.3%, whereas those to “transport, warehouse and communications” dropped 6.7%. These sectors accounted for 75.0% of the total SME loans outstanding.

The utilisation rate, defined as the proportion of outstanding credit balance to the credit limit granted, rose 2.2 percentage points from six months ago to 60.3%.

Delinquent Loans

At the end of June 2011, the outstanding balance of delinquent SME loans decreased significantly by 18.3% from six months ago to MOP430.1 million. Compared to a year ago, the balance dropped 11.0%. Consequently, the delinquency ratio, a ratio of delinquent loans outstanding balance to total SME loans outstanding, dropped 0.71 percentage points from end-December 2010 or 0.75 percentage points from a year earlier to 1.40%.