StockTalk (4.28): Local bank loans fell by 0.85% MoM - the lowest level since September 2021. What's the impact?
Good day everyone!
Today's topic is about local loans. The total loans of local banks have declined for seven consecutive months. In March, total loans fell by 0.85% month-on-month to 796.8 billion SGD, the lowest level since September 2021.
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StockTalk (4.28): Local bank loans fell by 0.85% compared to MoM - the lowest level since September 2021. What's the impact?
The Monetary Authority of Singapore released data showing a decline in local bank loans from February to March, with a 3.97% decrease YoY. Commercial loans fell for seven consecutive months, with construction and real estate development falling by 0.84%. General business loans in wholesale trade, retail trade, accommodation, and food services also decreased. Consumer loans fell for six consecutive months, with housing and bridging loans decreasing by 0.13%. Stock financing loans fell by 0.42%. Auto loans were the only category that rose month-on-month, increasing by 0.18%. Credit card loans remained flat.
Join us and share your thoughts on today's topic. What impact will this decline of loans have on the local stock market? Please leave a comment below to share your opinion with us. Your feedback is valuable, and we appreciate your participation.
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GodSpeed289 : In general, a decline in bank loans leads to slowdown economic activity, which in turn leads to lower companies' earnings affecting investor confidence, eventually affecting stock prices. However, it's also important to note that the Singaporean stock market is made up of companies from a variety of sectors and industries, and each company's performance is influenced by a range of many other factors beyond just access to bank loans.
cola1010 : The continued decline in Singaporean bank loans may result in weaker economic growth as businesses postpone expansion plans, as well as a reduction in employment and consumer spending. Also, the decline in construction and real estate development loans may slow the property market, resulting in lower property prices, and the decrease in loans may indicate that individuals are becoming more prudent in their borrowing decisions, which may help prevent a potential debt bubble in the future.
Demascus : Is this why uob and ocbc have been falling the past few days? (apart from ex-div effect)![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
quekky : none, not taking any loan as I have nothing to buy
snoopy123 : when recession hits, everyone will be in need of spending money and the first quick and easy source is credit cards.. but dont get trapped yeah, remember to pay it up (in full) as soon as you get your pay check.![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
doctorpot1 : Not gonna take any loans in such a high interest rate environment. Just live within our means.
Moogoorooloo : I am not planning to borrow anything, other than library books.
erin39 : No plans to take any unsecured loans for now. already on hdb housing loan.
ZnWC : In general when interest rate increase, all loan will be affected because it becomes expensive to borrow. Locally housing loan is first to feel the impact not only due to recent cooling measure (increase ABSD fee) but also its long loan period (can be 10-20 years). The exception is car loan because of the high demand (and low supply COE cut). Recession which is another determining factor, will encourage loan because company need to borrow in bad times. Government aid package, inflation and global economy in particular US and China are factors that may change the loan trend.
sociable Dingo_8604 : Not planning to take up any loans. Interest rate still considered really high for me, and currently waiting for opportunities in the market.
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