Singapore bank lending falls in July as housing loans drop for 7th straight month

Housing loans continued to drop for the seventh month, by 0.2 per cent. Banks lent $201.77 billion in July, compared with $202.21 billion in June.
Housing loans continued to drop for the seventh month, by 0.2 per cent. Banks lent $201.77 billion in July, compared with $202.21 billion in June. ST PHOTO: KUA CHEE SIONG

SINGAPORE - Bank lending in Singapore fell in July from a month ago, as housing loans shrank for the seventh consecutive month, according to preliminary data released by the Monetary Authority of Singapore on Friday (August 30).

Banks lent a total of $680.70 billion in July, a drop of 0.9 per cent from the $687.08 billion in June. It was the first month that bank lending has shrunk after five months of expansion.

This was on the back of a decline in loans to both businesses and consumers.

Overall bank lending increased by 2 per cent year on year, compared with July last year.

Bank loans to businesses contracted 1.3 per cent in July, with lending standing at $418.01 billion, compared with June's figure of $423.50 billion.

Across the sectors, loans for manufacturing, general commerce and financial institutions recorded dips, while areas such as building and construction saw month on month growth.

Manufacturing loans shrank by 2.7 per cent compared with June while lending for financial institutions dropped by 3 per cent.

 

However lending for building and construction grew 0.7 per cent over the same period.

Bank lending to consumers also fell, by 0.3 per cent compared with June. It fell 0.9 per cent compared with July last year.

Housing loans continued to drop for the seventh month, by 0.2 per cent. Banks lent $201.77 billion in July, compared with $202.21 billion in June. Year on year they were down 0.8 per cent compared with July last year.