Singapore's loan growth climbs to 11.8% YOY in August

Thanks to business loans.

Industry domestic banking unit (DBU) loans in Singapore improved slightly to 11.8% YoY in August.

According to a research note from Maybank Kim Eng, the improvement comes with stronger business loans (+15.9%) overwhelming consumer loan weakness.

Key business-loan drivers are general commerce (+22.5% YoY), financial institutions (+20.2%) and transport, storage & communication (+22.5%).

In contrast, property loan weakness attenuated the momentum. Further, the report said that while the Singapore slowdown may be manifested in banks’ 3Q14 results, its impact should be shielded by stronger loan demand from Greater China, which has been gaining in importance.