According to statistics released today by the Monetary Authority of Macao, in the second half of 2017, new small and medium-sized enterprise (SME) credit approved rebounded when compared with the first half year.  Meanwhile, the outstanding balance of SME loans also recorded growth with the share of SME loans to major industries remained broadly stable.

New lending approved

In the second half of 2017, new SME credit limit approved by Macao banks totalled MOP12.8 billion, up 1.6% from the first half of 2017 but dropped 5.8% from the same period of 2016.  The collateralised ratio, which indicates the proportion of credit limit with tangible assets pledged, was 73.8%, down 12.4 percentage points when compared with the last survey period or 10.1 percentage points when compared with the same period of 2016.

Credit utilisation

As at end-December 2017, the outstanding balance of total SME loans increased 6.5% from end-June 2017 or 11.0% from a year earlier to MOP77.5 billion.  Compared to the last survey period, SME loans to “manufacturing industries”,  “restaurants, hotels and similar activities” and “construction and public works” increased at respective rates of 29.4%, 18.2% and 16.6% whereas those to “transport, warehouse and communications” dropped 12.8%.

The utilisation rate, defined as the proportion of outstanding credit balance to the credit limit granted, increased 2.8 percentage points from six months ago or 4.6 percentage points from a year earlier to 71.3%. 

Delinquent loans

At end-December 2017, the outstanding balance of delinquent SME loans rose 1.6% from six months ago but dropped 9.7% from the preceding year to MOP522.2 million.  The delinquency ratio, a ratio of delinquent loans outstanding balance to total SME loans outstanding, dropped 0.03 percentage points from end-June 2017 or 0.15 percentage points from a year earlier to 0.67%.