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Banks' credit growth under pressure from trade spats and cooling measures

Fitch Solutions expects UOB to take biggest hit as it has largest exposure to housing loans as at Q2 2018

Ann Williams

Published Wed, Aug 15, 2018 · 09:50 PM

Singapore

SINGAPORE'S banking sector will face greater headwinds over the coming quarters from the double whammy of the latest property cooling measures and rising trade tensions between the US and China, a research house said yesterday.

Turning cautious on the sector's outlook, Fitch Solutions Macro Research said it has lowered its 2018 and 2019 loan growth forecasts for Singapore banks to 5.0 per cent and 4.5 per cent, respectively, from 6.4 per cent and 6.0 per cent previously.