Here's what sluggish business loans did to banks

General commerce loans also contracted.

According to OCBC Viewpoint, bank loans moderated from 19.2% yoy in Aug to 16.5% yoy in Sep, and also from +2.3% mom in Aug to +0.7% mom in Sep.

Here's more from OCBC Viewpoint:

The yoy moderation was mainly due to business loans slowing from 22.3% yoy (+3.0% mom) to 17.5% yoy (+0.3% mom), as general commerce loans pulled back from +27.8% yoy (+2.1% mom) to +15.9% yoy (+0.5% mom).

In contrast, consumer loans stabilized at 15.1% yoy (+1.4% mom) which is the same yoy pace as Aug (+1.3% mom), with housing loans still expanding at a resilient 14.5% yoy (+1.2% mom) which is only a tad slower than the +14.7% yoy (+1.4% mom) pace seen in Aug.

For the first three quarters of 2012, bank loans growth is running about 22.8%, with Q3 clocking in at +18.6% yoy and in line with our forecast of +18% yoy in 3Q12. Our full-year bank loans growth remains at 21% yoy.