Chart of the Day: Housing loan growth held on to 6.1% amidst bite of new rules

But system LDR dipped.

According to Barclays, housing loan growth was steady at 0.8% m/m and 6.1% ytd, despite the MAS’s fine tuning of housing loan to value limits in late June and the introduction of a 60% Total Debt Servicing Ratio (TDSR) cap, to further strengthen credit underwriting standards.

Barclays siad that the system loan to deposit ratio declined to 99% (from 100% in June) as deposit growth outpaced loan growth. In particular, ACU deposits rose by 2.3% m/m, despite the volatility in ASEAN markets and concerns over potential liquidity outflows.

"We believe this reflects Singapore’s strength as Asia’s key funding center. Despite the elevated tightness in system liquidity relative to history, we believe Singapore is still one of the most resilient markets in EM Asia to liquidity outflows," Barclays said.