Singapore bank lending in August inches back to growth

File photo showing ATM machines of different banks at Changi Airport terminal 2.
File photo showing ATM machines of different banks at Changi Airport terminal 2.PHOTO: ST FILE

SINGAPORE - Bank lending in Singapore crept higher in August from a month ago after July saw the first decline since January, preliminary data from the Monetary Authority of Singapore showed on Friday (Sept 28).

Loans through the domestic banking unit - which captures lending in all currencies, but reflects mainly Singapore-dollar lending - stood at $670 billion in August, 0.4 per cent up from $668 billion a month ago.

The growth reverses from the 0.9 per cent month-on-month decline in July, as business lending returned to growth. Business lending increased 0.6 per cent in August to $405 billion. In July, business lending fell 1.4 per cent.

Consumer lending in August was flat at $265 billion. In July, this was down 0.1 per cent on a month-on-month basis.

From a year ago, bank lending rose 5.6 per cent, stronger than the year-on-year increase of 5.5 per cent posted in July.