Approvals of residential and commercial loans increase

Approvals of of both residential mortgage loans (RMLs) and commercial real estate loans (CRELs) in Macau rose in December 2018, the Monetary Authority of Macao revealed yesterday.

According to a statement issued by the monetary watchdog, new RMLs approved by Macau banks in December increased 2.2 percent month-to-month to MOP3.7 billion (about USD459 million).

The monthly average of new RMLs approved between October and December 2018 was MOP3.5 billion, down 36.1 percent from the previous period (September to November 2018).

New CRELs rose 96.7 percent month-to-month to MOP5.5 billion. New CRELs to residents, which accounted for 99.1 percent of the total, surged by 107.2 percent, mainly driven by new enterprise loans with a high denomination.

The monthly average of new CRELs approved between October and December 2018 was MOP3.9 billion, up 23.5 percent when compared with the previous period (September to November 2018).

At the end of December 2018, the outstanding value of RMLs was MOP215.7 billion, up 1.1 percent from a month earlier or 13.9 percent from a year ago. Residential loans made up 92.7 percent of the total.

The outstanding value of CRELs was MOP198.3 billion, up 2.2 percent month-to-month or 11.0 percent from a year earlier.

At the end of December 2018, the delinquency ratio for RMLs was 0.16 percent, unchanged from the preceding month, but down by 0.02 percentage points compared to a year earlier. The ratio for CRELs stayed at 0.15 percent from a month ago but was up by 0.01 percentage point compared to the end of December 2017.