The Singapore-based OCBC bank has denied claims that the firm is withdrawing from Macao after a recent business strategy transformation prompted speculations. OCBC said the strategic shift was a commercial decision and the firm would “absolutely not withdraw from the Macao market.”
On September 14, OCBC issued an announcement stating that the bank is continuously advancing its business strategy transformation. Effective immediately, it has stopped accepting new applications for credit cards, residential mortgages, auto loans, and personal loans, and will gradually discontinue its credit card operations. In the future, the bank will focus further on wealth management and other core banking services. The announcement triggered widespread public speculation, including rumors about a potential market exit.
Lou Shiyan, Associate Professor at the Faculty of Finance of City University of Macau, believes that adjusting business scope based on an institution’s needs is a normal operational practice and a necessary step for an enterprise to maximize profits. Eliminating non-profitable sectors to focus on higher-margin services represents an optimistic approach. Should other banks make similar business adjustments in the future, the public should view them positively.
Lou explained that OCBC’s recent adjustments reflect a contraction in traditional business segments. Credit card operations, for instance, have been heavily impacted by electronic payments, leading to significant drops in both new applications and active card usage. Meanwhile, the real estate sector has been affected by domestic and international factors, local economic conditions, and supply-demand dynamics, which decreased residential mortgage demand. Coupled with intense peer competition, OCBC’s adjustments in these areas are logical.
Wang Shifa, Standing Vice President of the General Association of Real Estate Macau, analyzed the situation from a property market perspective. He noted that the real estate market has weakened significantly compared to previous years. Prior to the COVID-19 pandemic, Macao recorded 800 to 1,000 residential transactions per month, whereas monthly volume has dropped to around 200 cases today—a sharp contraction of over 70%, accompanied by a noticeable decline in transaction value. Wang noted that maintaining residential mortgage operations under high labor and material costs in a shrinking market is inefficient, believing that OCBC’s strategy shift is purely a commercial decision.
In response to inquiries from Allin, the Monetary Authority of Macao (AMCM) stated that OCBC had fully communicated with the authority prior to this major adjustment in accordance with regulations. AMCM required OCBC to ensure proper customer notification and smooth transitional arrangements for affected clients. AMCM emphasized that it closely monitors the operational status of all banks by law, noting that Macao’s banking system remains stable with ample liquidity. As commercial entities, banks may adjust their business strategies based on commercial considerations.
When asked by Allin, Ip Sio Kai, Chairman of The Macau Association of Banks, stated: “As an industry guild for banks, we generally do not comment on the business development strategies of member banks.”
In the FAQ section on its official website, under the question “2. Is OCBC Macau preparing to withdraw from the Macao market?”, OCBC responded: “Absolutely not.” The bank emphasized that Macao remains an important market for OCBC, and it will continue to serve the local community by providing professional and reliable financial support through its branch network, digital banking platforms, wealth management, and other banking services.
