According to statistics released today by the Monetary Authority of Macao, new SME lending approved by Macao banks witnessed a decline in the second half of 2010. Concurrently, the utilisation of SME credit in proportion to the credit limit approved by banks rose from the last survey period.

New Lending Approved

In the second half of 2010, new SME credit limit approved by Macao banks totalled MOP8.5 billion, 17.5% down from the first half of 2010 or 3.7% down from the same period of 2009. The collateralised ratio, which indicates the proportion of credit limit with tangible assets pledged, was 63.8%, up significantly by 27.5 percentage points when compared with the first half of 2010 but down marginally by 0.6 percentage points when compared with the same period of 2009.

Credit Utilisation

As at end-December 2010, the outstanding value of total SME loans reached MOP24.9 billion, which represented a growth of 11.1% from end-June 2010 or 20.8% from a year earlier. When compared with end-June 2010, SME loans to “restaurants, hotels and similar activities”, “wholesale and retail trade”, “manufacturing” and “construction and public works” increased at respective rates of 56.7%, 30.3%, 10.0% and 7.2%, whereas those to “transport, warehouse and communications” dropped 8.2%. These sectors accounted for 74.7% of the total SME loans outstanding.

The utilisation rate, defined as the proportion of outstanding credit balance to the credit limit granted, rose 4.8 percentage points from six months ago to 58.1%.

Delinquent Loans

At the end of December 2010, the outstanding balance of delinquent SME loans increased 8.9% from six months ago to MOP526.3 million. Compared to a year ago, the balance grew by 3.2%. Meanwhile, the delinquency ratio, a ratio of delinquent loans outstanding balance to total SME loans outstanding, edged down 0.04 percentage points from end-June 2010 or 0.36 percentage points from a year earlier to 2.11%.