, Singapore

Singapore loan growth strengthening but margin pressure to persist

See the impact on Singapore banks.

"The monetary statistics of the Monetary Authority of Singapore for June showed moderating system loan growth, especially in the general commerce (trade finance) and manufacturing segment," said Barclays analyst Sharnie Wong.

"The system loans to deposits ratio was steady at 100%. Singapore banks are defensive to potential liquidity tightening in Emerging Markets in Asia and are key beneficiaries from the rising interest rates in the medium term. However, we see a lack of near-term positive catalysts as strong loan growth will likely be offset by some margin pressure," added Wong.

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