Singapore Financial Sector Development, Singapore Financial Sector - Ken Research
by Ashish Kumar Market ResearcherThe gloomy headlines concerning the economic position of Singapore in
recent years will revolutionize in 2017 which will bring brighter prospects.
These positive sentiments are restricted only to few sectors in the economy.
Consumer credit maintained positive growth rates and is supported by increase
in mortgages and credit card interest payments.
According to research report, “Consumer Lending in
Singapore”, consumer
lending conditions may tighten further along with efforts to control and risk
in the financial systems. Regardless of the depressing economic position in
Singapore, consumer lending maintained a positive growth rate in current terms.
On a national perspective, there were increase in mortgages and credit card
interest payments. Consumer credit lending has a current value growth but the
number of incomplete loans saw a slower repayment option and total consumer
credit outstanding balance declined.
The new private vehicle registrations increased when the government
reduced restrictions on vehicle financing in 2015. This led to a strong growth
in consumer auto lending. The year 2016 saw a positive recover in auto lending
outstanding balance. However, a strong demand from app-based private rental
cars, it slowed down the growth in car loans and consumer auto lending showed
signs of slowdown in 2016.
Consumer lending is expected to see minimum value growth in 2016 due to
the less positive economic outlook. The real GDP forecasts by analysts was
disappointing and rising unemployment rate contributed to the sluggish forecast
in consumer lending. The Singaporeans became more risk-adverse and avoided
higher interest rates on consumer loans.
Consumer lending by Singapore banks strengthened in February 2017.
However, weak lending growth to still haunt Singapore banks in 2017. The
consumer lending growth varies between 1% to 2% for the year 2017. Latest
banking data confirms that the analysts' negative view on the financial sector
shows declining growth to 11% and the asset quality continues to worsen. In
general, the loan growth for the year 2018 will very much depend on the job
market pickup. Business loans will continue to dip along with the uncertain
economic environment.
According to research firm, Ken Research, consumer loan growth was
steady, with total lending up 3% from November 2016. Housing and bridging loans
increased drastically. Credit card lending increased and car loans dipped. The
financial sector has taken a series of specific measures to strengthen
financing channels for next-generation Asian growth companies and to build
technology infrastructure to drive innovation.
Singapore aspires to be the financing hub for the next-generation
companies. These companies range from small start-ups to medium enterprises or
early-stage large enterprises and often have a strong focus on innovation or
technology.
In the coming years, the financial sector will work with industry
players to study successful private market structures and engage potential
platform and market operators to unlock capital so that they can go on to start
new and innovative businesses.
The government has taken interest in developing Know-Your-Customer (KYC)
utility. This is a process by which a financial institution identifies and
verifies the credentials of their clients for any type of loan. This is a
crucial process for all the financial services industry worldwide. The
Singapore government is working closely to study the feasibility of developing
an industry KYC utility that perform KYC processes on a centralised basis.
Key Topics Covered in the Report:
Consumer Lending In Singapore
Singapore Consumer Lending Sector
Singapore Financial Sector
Singapore Banking and Financial Market
Consumer Landing Forecast Singapore
Singapore Financial Sector Growth
Singapore Financial Sector Outlook
Singapore Financial Sector Development
Singapore Consumer Lending Sector Research
To know more about the publication
Related reports
Contact:
Ken Research
Ankur Gupta, Head Marketing & Communications
+91-124-4230204
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