Banks should thank economy for their quarterly showing

THE three local banks predictably posted reasonable results for their core businesses in the third quarter of the year. After all, rising economic activity has fanned consumer sentiment, leading to a greater appetite for loans and financial products like insurance.

The economy's recovery is gathering pace, with growth rates accelerating over two straight quarters - thanks largely to a sustained increase in global electronics demand, the Monetary Authority of Singapore (MAS) said last month in its latest macroeconomic review.

In Asia, the trade upswing since late 2016 has led to a pick-up in manufacturing activity and a rise in incomes, which should filter through to stronger domestic spending.