Here's why Singapore banks can accommodate further credit growth this year

The banks report healthy liquidity levels.

According to Moody's Investors Service, the banks’ LDRs remain at comfortable levels for their local and foreign currency portfolios. At current levels, there remains sufficient headroom to accommodate further credit growth in 2017.

Here's more from Moody's:

The banks' funding is supported by the high proportion of low-cost current account and savings account (CASA) deposits in their funding mixes, which are driven by their strong domestic deposit franchise.

The banks' all-currency Liquidity Coverage Ratios are also well in excess of the minimum regulatory requirements (80% in 2017, 90% in 2018 and 100% in 2019 and after), which testifies to the banks' strong overall liquidity profiles.