Loan approvals record decrease in December

In December 2017, new residential loans approved by local banks fell by 22.3 percent month-to-month to MOP3.2 billion. Of this figure, new loans to residents, accounting for 97.3 percent of the total, decreased by 23.7 percent month-on-month to MOP3.1 billion.

In contrast, non-resident loans soared by 145.2 percent from the previous month to MOP85.2 million, according to figures released this week by the Monetary Authority of Macao.

When compared with the same period of 2016, new approvals of residential loans fell by 24 percent.

New residential loans collateralized by uncompleted units (i.e. equitable mortgages) decreased by 1.2 percent from the preceding month to MOP324.5 million.  The number of equitable mortgages extended to residents, which accounted for 95.7 percent of the total, declined by 5.5 percent from the previous month. 

On an annual basis, approvals of new equitable mortgages grew by 4.6 percent.

New commercial real estate loans (CRELs) decreased by 15.8 percent month-to-month to MOP5.5 billion; of which, new CRELs to residents, accounting for 97.4 percent of the total, fell by 15.4 percent to MOP5.4 billion.

Loans granted to non-residents also dropped by 28.7 percent to MOP144.2 million.  On an annual basis, new approvals of CRELs increased by 20.3 percent.

As at end-December 2017, the outstanding value of residential loans was MOP189.5 billion, up 0.2 percent from a month earlier or 4.2 percent from a year ago.

The outstanding value of CRELs was MOP178.7 billion, up slightly by 0.1 percent month-to-month or 5.4 percent year-on-year.

Residents accounted for 90.4 percent of the loan recipients.

Compared with a month earlier, outstanding CRELs to residents edged up 0.1 percent whereas those to non-residents decreased by 0.3 percent.