Singapore bank lending down 2.7% in June, on longest stretch of declines on record

BANK lending in Singapore fell 2.7 per cent in June from a year ago - a sharp contraction compared to May - extending the longest stretch of declines on record, preliminary data from the Monetary Authority of Singapore on Friday showed.

Loans through the domestic banking unit - which essentially captures lending in all currencies but mainly reflects Singapore-dollar lending - stood at S$590 billion, down from S$607 billion a year ago. The 2.7 per cent contraction is much sharper compared to the 0.7 per cent decline registered in May from a year ago.

This also marks the ninth straight month of declines for bank lending - a record stretch ever since bank lending data were made available in 1992.

The drag came from business lending, which fell 6.2 per cent from a year ago to S$345 billion. This was also sharper than the 3.1 per cent decline recorded in May, compared to a year ago.

Consumer loans gained 2.8 per cent in June from a year ago to S$245 billion.