Singapore's bank lending dropped for the fifth month in July. Total loans from the domestic banking unit – which capture lending in all currencies, but mainly reflects Singapore-dollar lending – came in at $678.7 billion in July, according to preliminary estimates announced August 31 by the Monetary Authority of Singapore (MAS).
Singapore’s banks are still experiencing broad-based business contraction, says CGS-CIMB, and while credit growth may pick up as GDP recovers, the end of moratoriums could deepen asset quality pressures.
CGS-CIMB analysts Andrea Choong and Lim Siew Khee are maintaining “neutral” on banks in an August 31 note, recommending “hold” on all three banks, namely DBS Group, Oversea-Chinese Banking Corporation (OCBC) and United Overseas Bank.
