Singapore September bank lending falls further on prolonged weakness in business loans

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SINGAPORE's bank lending in September dipped for the seventh straight session, as continued weakness in business loans more than offset the rise in consumer loans. Read more at The Business Times.

Loan growth in the agriculture sector and business-services sector also moved into negative territory, coming in at S$2.25 billion and S$11.41 billion respectively in September.

However, the single-largest business lending segment - building and construction - extended its growth. Loans to the construction industry rose 0.7 per cent in September over the month to S$150.91 billion. Meanwhile, consumer loans in September climbed 0.3 per cent to S$256.18 billion month on month, mainly lifted by housing loans and loans for share financing.

Housing loans, which make up three quarters of consumer lending, marched into positive growth territory for the first time since January, up 0.1 per cent month on month to S$199.09 billion in September. Loans for share financing grew 6.5 per cent to S$1.87 billion, from S$1.75 billion in August. Unsecured personal loans, excluding credit cards, rose 1.2 per cent to S$37.07 billion month on month, while credit card loans ticked up 0.2 per cent to S$9.84 billion. Car loans were flat at S$8.31 billion.

Overall, loans through the domestic banking unit - which captures lending in all currencies, but reflects mainly Singapore-dollar lending - stood at S$677.46 billion in September, compared with S$677.86 billion a month ago.Business loans in September contracted 0.2 per cent from a year ago, while loans to consumers slid 2.5 per cent over the same period.

 

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