According to statistics released today by the Monetary Authority of Macao, new small and medium-sized enterprise (SME) lending approved by Macao banks expanded in the second half of 2016. The utilisation of SME credit in proportion to the credit limit approved rose when compared with the previous survey period. The outstanding balance of SME delinquent loans recorded an increase.
New lending approved
In the second half of 2016, new SME credit limit approved by Macao banks totalled MOP13.6 billion, up by 36.8% from the first half of 2016 but down 34.1% from the same period last year. The collateralised ratio, which indicates the proportion of credit limit with tangible assets pledged, was 83.9%, up 2.3 percentage points when compared with the last survey period or 0.2 percentage points when compared with the same period of 2015.
Credit utilisation
As at end-December 2016, the outstanding value of total SME loans increased 3.0% from end-June 2016 or 4.5% from a year earlier to MOP69.8 billion. When compared with end-June 2016, SME loans to “restaurants, hotels and similar activities” and “construction and public works” increased at respective rates of 8.3% and 3.0% whereas those to “manufacturing industries”, “transport, warehouse and communications” and “wholesale and retail trade” dropped 16.1%, 3.0% and 2.1% respectively.
The utilisation rate, defined as the proportion of outstanding credit balance to the credit limit granted, increased 5.1 percentage points from six months ago to 66.8%.
Delinquent loans
At end-December 2016, the outstanding balance of delinquent SME loans rose by 88.7% from six months ago to MOP578.1 million. Compared to a year ago, the balance grew 57.9%. The delinquency ratio, a ratio of delinquent loans outstanding balance to total SME loans outstanding, increased 0.38 percentage points from end-June 2016 or 0.28 percentage points from a year earlier to 0.83%.