Loan approvals witness increase in June

New approvals of residential mortgage loans (RMLs) and commercial real estate loans (CRELs) increased in June 2018, as did their respective outstanding balances, according to the latest data from the Monetary Authority of Macao.

In June, new RMLs approved by Macau banks increased by 51.2 percent month-to-month to MOP7.4 billion, of which new RMLs to residents, accounting for 63.5 percent of the total, decreased by 2.4 percent to MOP4.7 billion. As it was mainly attributed to the approval of enterprise loans with large loan size, the non-resident component increased to MOP2.7 billion.

The monthly average of new RMLs approved between April and June 2018 was MOP5.4 billion, up by 8.2 percent from the previous period, covering March through May.

Meanwhile, new CRELs rose by 118.4 percent month-to-month to MOP6.4 billion. Within this total, new CRELs to residents, which occupied 98.3 percent of the total, surged by 118 percent to MOP6.3 billion, as it was mainly driven by new enterprise loans with a high denomination.

Meanwhile, the non-resident component also grew to MOP112 million. The monthly average of new CRELs approved between April and June was MOP5.9 billion, up by 3.7 percent when compared with the previous three-month period.

As at end-June 2018, the outstanding value of RMLs was MOP197.5 billion, up by 2.6 percent from a month earlier or 6.3 percent from a year ago. The outstanding value of CRELs was MOP195 billion, up by 1.3 percent month-to-month or 12.9 percent year-on-year.