Chart of the Day: Here's proof that Singapore banks are basking in higher US$ loans

It's predicted to jump further.

According to CIMB, much of the loan growth in 2Q was attributed to US$ loans, driven in large part by trade finance. In 2Q13, US$ loans accounted for 33.6% of DBS’s total loan book, 25.2% of OCBC’s loans and 13.0% of UOB’s loans. 

CIMB believes USD lending is expected to rise further. These loans are short-term in nature, low-risk credit, low margin and tend to pay off in fees.

"DBS said it is less concerned about China and India as a good portion of their loans are trade finance loans. In 2Q, OCBC’s US$ loans to total loans spiked 1.8% qoq due to US$ loans taken by a large SG corporate client, on top of trade finance growth," CIMB said.

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