According to statistics released today by the Monetary Authority of Macao, new approvals of both residential mortgage loans (RMLs) and commercial real estate loans (CRELs) increased in July 2015. With regard to outstanding balance, RMLs and CRELs also witnessed increases. New lending approved In July 2015, new RMLs approved by Macao banks increased 6.6% month-to-month to MOP4.2 billion; of which, 96.6% was extended to residents. In terms of value, new RMLs to residents and non-residents increased 6.3% and 13.8% respectively. When compared with the same period of 2014, new approvals of RMLs witnessed a decrease of 23.9%. New RMLs collateralised by uncompleted units (i.e. equitable mortgage) increased by 185.6% month-to-month to MOP806 million. The equitable mortgage extended to residents, which accounted for 97.4% of the total, increased 187.3%. When compared with the same period of 2014, new RMLs collateralised by uncompleted units decreased by 25.2%. New CRELs grew by 102.4% month-to-month to MOP12.6 billion; of which, 78.3% was granted to residents. In terms of value, new CRELs to residents and non-residents increased 65.3% and 948.7% respectively. On an annual basis, new approvals of CRELs dropped by 27.8%. Outstanding balances As at end-July 2015, the outstanding value of RMLs reached MOP167.0 billion, an increase of 0.9% from one month earlier or 18.6% from a year ago. The resident component made up 94.2% of the total. Compared to end-June 2015, outstanding RMLs to residents and non-residents rose 1.0% and 0.7% respectively. Concurrently, the outstanding value of CRELs increased 4.7% from end-June 2015 and was up 32.7% from end-July 2014 to MOP147.4 billion. Residents accounted for 88.3% of the loans. Compared with one month earlier, outstanding CRELs to residents and non-residents grew 3.7% and 13.1% respectively. Delinquency ratios At the end of July 2015, the delinquency ratio for RMLs stood at 0.07, virtually unchanged from a month and a year ago. The ratio for CRELs was 0.05, down 0.02 percentage points from a month ago and from end-July 2014.
