Bank Lending for Household Consumption Grew by 26.2 percent in September

Preliminary data show that outstanding loans of universal and commercial banks, net of reverse repurchase (RRP) placements with the BSP, grew at a steady rate of 10.5 percent in September, similar to the rate previously recorded in August. On a month-on-month seasonally-adjusted basis, commercial bank loans net of RRPs grew by 0.8 percent.

Loans for production activities�which comprised 87.4 percent of banks' aggregate loan portfolio, net of RRPs�expanded at a steady rate of 9.0 percent in September, unchanged from the reported growth in August. The sustained increase in production loans was driven primarily by lending to the following sectors: real estate activities (18.3 percent); financial and insurance activities (17.6 percent); construction (36.2 percent); electricity, gas, steam and air conditioning supply (9.2 percent); and wholesale and retail trade, repair of motor vehicles and motorcycle (4.8 percent).

Bank lending to other sectors also increased during the month, except those in professional, scientific and technical activities (-35.7 percent) and other community, social and personal activities (-39.8 percent).

Meanwhile, loans for household consumption grew by 26.2 percent in September from 25.4 percent in August, due to faster growth in motor vehicle, credit card, and salary-based general purpose consumption loans during the month.

Going forward, the BSP will continue to ensure that the expansion in domestic credit and liquidity remains consistent with the BSP's price and financial stability objectives.

Source: Singapore Police Force