The domestic loan book of banks in Singapore grew by 27.8 per cent in July on an annual basis, the fastest in the 12 years that comparable data has been available from the Monetary Authority of Singapore.
Cumulative loans outstanding of banks including DBS Group Holdings, Oversea-Chinese Banking Corp and United Overseas Bank reached S$381.8 billion at the end of the month, led by advances for general commerce and the agricultural, mining, quarrying and manufacturing industries.
From a month ago, bank lending here gained 2 per cent. DMG and Partners Research said in a report that the 2.7 per cent month-on-month increase in business loans in July was sharply lower than June’s 4.1 per cent because of softer growth in manufacturing loans, loans to financial institutions and general commerce loans.
Whilst business loans were the star performers year-to-date, the house expects slowing business loans going forward, on the back of global uncertainties reducing investments by corporates.
Housing loans to consumers rose 1.3 per cent to S$122.9 billion from June, central bank data showed. Loans to professionals and private individuals amounted to S$3.9 billion in July, slightly up from S$3.87 billion in June. Building and construction loans were S$60.55 billion, compared with S$59.17 billion in June and S$48.71 billion in July last year. Manufacturing loans was S$16.17 billion, slightly up from S$16.15 billion in June.