Singapore bank lending down for fifth month in July
Singapore
SINGAPORE's bank lending extended its slide for the fifth straight month in July, dipping 0.2 per cent to S$678.7 billion from the previous month on general weakness in business loans.
On a month-on-month basis, loans to businesses were down 0.3 per cent to S$424.2 billion in July on weaker loans to manufacturing, transport, business services and others, preliminary data from the Monetary Authority of Singapore (MAS) showed on Monday.
This marks the fourth consecutive month of decline in business loans on prolonged economic pain caused by the Covid-19 crisis.
The manufacturing sector in July recorded the sharpest fall in loans, tumbling 8.3 per cent to S$26.7 billion from the month earlier. Year on year, loans were down 4.6 per cent.
Loans to the transport sector fell 1.7 per cent to S$26.4 billion in July, while loans to business services dropped 1.5 per cent to S$11.3 billion. Loans to others also inched down 0.4 per cent to S$32.9 billion.
Meanwhile, the building and construction sector saw a 0.4 per cent month-on-month rise in loans to S$148.6 billion in July.
Loans to financial institutions also grew 1.2 per cent to S$103.5 billion over the same period, while loans to general commerce came in flat at S$64.4 billion.
On a year-on-year basis, total loans to businesses grew 1.5 per cent.
In July, consumer loans were largely flat at S$254.5 billion, but down 2.9 per cent year on year.
Housing and bridging loans - which make up the bulk of consumer lending - dipped 0.3 per cent in July to S$199 billion month on month.
Over the same period, car loans also fell 0.8 per cent to S$8.2 billion, while loans for share financing shed 4 per cent to S$1.5 billion.
However, unsecured personal loans - excluding credit cards - ticked up 1.3 per cent to S$36.1 billion and credit card loans grew 2.2 per cent to S$9.7 billion.
Overall, total loans through the domestic banking unit - which captures lending in all currencies, but reflects mainly Singapore-dollar lending - stood at S$678.7 billion in July, compared with S$680.1 billion in June.
MAS's preliminary data previously reflected that total loans in June came in at S$680.4 billion, compared with the actual revised figure of S$680.1 billion.
Year on year, total loans fell 0.3 per cent in July to mark the second consecutive year-on decline.
