(30 June 2016 – Singapore) Singapore's total bank lending in May rose from the prior month, buoyed by a stronger demand for manufacturing loans, central bank data released this week indicates.
Loans and advances by domestic banks in the city-state amounted to S$592.8 billion (A$590 billion) in May, data from the Monetary Authority of Singapore (MAS) showed, up from S$589.8 billion in April.
Lending to the manufacturing sector increased to S$29.1 billion in May from S$27.6 billion in April.
However, overall lending was down 0.7 percent compared to the same period a year earlier. Likely causes for the year-on-year decrease are a decrease in borrowing appetite from the commercial sector and from financial institutions amidst a weaker global economy.
Business loans to transport, storage and communications in May recovered 3.2 percent year-on-year, and was up 2.2 per cent month-on-month, after two consecutive months of declines.
On the consumer side, she said car loans should continue to improve modestly with the recent easing in car loan measures.
In a downgrade note for Singaporean banks, ratings agency Moody’s said high corporate debt remains a key risk. The debt of domestic non-financial firms has increased to 82 percent of gross domestic product (GDP) in 2015 from 58 per cent in 2010.