Singapore loans grew 8% in 2017 but still lags behind Hong Kong

A robust economy and optimism in the property market are slowly narrowing the gap.

Singapore’s system loans are picking up pace after growing from a measly 1% in 2016 to 8% in 2017 as it tries to catch up to close regional competitor Hong Kong’s strong credit flows, according to a report from investment banking firm Jefferies.

The city state’s Big Three – DBS, OCBC, UOB – registered loan growth within a similar range in 2017 thanks to the Lion City’s strong economic performance and property market optimism.

The report also noted that Singapore’s loan growth has grown to the extent that it is on par with Indonesia or exceeding that of footprint ASEAN economies such as Malaysia’s 4%. However, the city state still lags behind Thailand who posted 9% loan growth and Hong Kong who reported the largest system loans at 16% amidst soaring property prices.