Guess what is the biggest threat to Singapore banks' robust loan growth

Will it scare banks soon?

According to Credit Suisse, Singapore banks' overall loan growth has been extremely strong over the past 4–6 quarters given the macro backdrop, helped by a renewed strength in regional trade finance loans and offshore corporate loan bookings in Singapore.

But with further downgrades to regional GDP growth estimates and an imminent slowdown in Singapore mortgages, the risks are to the downside in the next few quarters.

Here's more from Credit Suisse:

ASEAN loan growth slowdown is imminent. Overseas loans have been a major contributor to Singapore banks' loan growth over the past 1–2 years.

Relatively, OCBC has seen the biggest contribution from overseas loan growth (49% contribution to growth over the past year) and UOB has seen the least (only 25% contribution). The bulk of the overseas growth has come either from ASEAN (UOB and OCBC) or Greater China (DBS).  

Join Singapore Business Review community
A NOTE FROM SINGAPORE BUSINESS REVIEW

If you've been wondering whether SBR could work for your company — yes, probably.

A lot of the companies we partner with started as readers. They'd been following our coverage for a while, saw their own customers and competitors in it, and eventually asked the obvious question: could we do something with you? The answer is usually yes. The shape of it depends on what you're trying to do.


The options are broader than most people assume — thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. Some partners use one channel; most use a mix. We figure out the right combination by starting with your brief, not with our rate card.


So if the question has been on your mind, here's the easy way to ask it.

We'll tell you honestly whether we can help, and how. It's a better use of everyone's time.