The Business Times
business-time-50
SUBSCRIBERS

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

google-preferred-sourceAdd BT as a preferred source
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

    DeeperDive is a beta AI feature. Refer to full articles for the facts.

    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.

    Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.

    Singapore banksLoansfixed depositsSpotlight

    Copyright SPH Media. All rights reserved.

    Reuse this contentFeedback

    TRENDING NOW

    Air India has been one of the foreign carriers most affected by the outbreak of hostilities in the Middle East.

    Air India asks Tata, Singapore Airlines for funds after US$2.4 billion loss

    In this economy, the smartest bets might no longer be sitting an ocean away, but are waiting right here at home.

    ‘Boring’ is the new black: The stars are aligning for a Singapore stock market revival

    Malaysia Madani, or Civil Malaysia, is Prime Minister Anwar Ibrahim's slogan encapsulating positive values (such as humanity and strong governance) that would shape policy direction. But the "corporate mafia" claims have now cast the spotlight on governance credibility.

    From 1MDB to ‘corporate mafia’: Is Malaysia facing a new governance test?

    Malaysia ranks 23rd globally on the Milken Institute’s global opportunity index.

    South-east Asian markets account for 8.8% of global capital inflows from 2021 to 2024: report

    Latest T-bills Treasury Bills Results & Interest NewsLatest SSB Singapore Savings Bonds NewsLatest COE Certificate of Entitlement News
    Latest Johor-Singapore SEZ NewsLatest BTO Build To Order & Sales of Balance NewsLatest STI Straits Times Index NewsLatest SGX Dividends, Share Price NewsLatest Bonds Market NewsLatest Singapore Stocks To Buy NewsLatest Singapore Economy News
    View More