Bank loans up 5.4% to $650.62b in January

Business loans led the growth with a 5.6% increase.

Singapore’s total bank loans in January rose 5.4% YoY from $617.11b to $650.62b, which is slightly weaker than the 5.6% YoY growth in December, the Monetary Authority of Singapore (MAS) revealed.

According to preliminary data, business loans rose 5.6% YoY to $387.27b, whilst consumer loans grew 5.2% YoY to $263.35b. Compared to December, business loans dipped 0.6% whilst, consumer loans grew by 0.4% which is the same rate as last month.

On a monthly basis, bank loans dipped 0.2% from $651.93m in December.

Meanwhile, Singapore’s overall loans are picking up pace after growing from a measly 1% in 2016 to 8% in 2017 as it tries to catch up to close regional competitor Hong Kong's strong credit flows, according to a report from investment banking firm Jefferies. The banks registered loan growth within a similar range in 2017 thanks to the Lion City's strong economic performance and property market optimism.