Singapore banks' loan growth to average 7% in 2017

Thanks to improving domestic business sentiments.

According to OCBC, the Singapore bank loans growth momentum should sustain in 2H17 to average 7.0% yoy for the full-year, given that domestic business sentiments have improved and the 2H16 base was low at +0.1% yoy.

"Moreover, while regional trade and economic activities may moderate in 2H after a stellar 1H, regional manufacturing and services PMIs do not suggest a sharp drop-off at this juncture. The recent 2Q17 labour market report also revealed that the overall unemployment rate was unchanged at 2.2% and layoffs had declined, which should provide some support to consumer appetite for big-ticket items," added OCBC analyst Selena Ling.