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Singapore banks may face squeeze in net interest margins amid muted loan growth, high demand for FDs

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Tan Nai Lun

Tan Nai Lun

Published Thu, Apr 6, 2023 · 05:50 AM
    • Recently released statistics from MAS shows that the overall non-bank loan-to-deposit ratio has fallen to 73.3 per cent in February 2023, from 81.2 per cent in February 2022.
    • Recently released statistics from MAS shows that the overall non-bank loan-to-deposit ratio has fallen to 73.3 per cent in February 2023, from 81.2 per cent in February 2022. PHOTO: ST FILE

    SINGAPORE banks could be in for tougher times as loan growth moderates and Singapore’s savers continue piling into higher-interest fixed deposit products, analysts said.

    Recently released statistics from the Monetary Authority of Singapore (MAS) showed that the overall non-bank loan-to-deposit ratio had fallen to 73.3 per cent in February 2023, from 81.2 per cent in February 2022.

    In July 2021, the loan-to-deposit ratio was 85 per cent. Comparable statistics are not available for earlier periods following changes in MAS classifications. Non-bank loans and deposits are those of individuals and non-bank companies or other institutions.

    Singapore banksLoansfixed depositsSpotlight

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