This is the fastest expansion rate since October 2018.
Singapore bank lending rose 3.5% year-on-year (YoY) in June, the highest since October 2018, amid market optimism, OCBC Treasury Research reported.
This is due not only to last year’s weak base, but also to more buoyant economic sentiment.
Business loan growth finally returned to positive territory at 2.6%, boosted by growth of 12.8% in general trade loan demand and 1.2% growth in loan demand from financial institutions .
Consumer lending has been rising since February amid a buoyant mortgage market, which grew 3.4% year-on-year, and credit demand for cards, credit card spending and phone financing. shares.
“This suggests that despite the moderating effects of the tighter restrictions during the Phase 2 (enhanced alert) period from mid-May to mid-June, S’pore’s economy was generally in better shape compared to the tighter circuit breaker restrictions,” said OCBC Treasury Research Head of Research and Strategy Selena Ling.
On a month-to-month basis, bank lending in June rose 1.5%, marking the eighth consecutive month of bank lending expansion.
“Bank loan growth accelerated to 1.7% YoY in 2Q21, bringing the first half to 0.5% YoY. Our full-year bank loan growth forecast remains at 1, 5% year-over-year given the relatively weak base in the second half of 2020,” Ling said.