Singapore banks' system loan-to-deposit ratio rises to 100%

Another record high this September.

Singapore banks' system loan-to-deposit (LDR) ratio hit 100% this September, another peak after reaching 99.2% in August based on the latest monetary statistics from the Monetary Authority of Singapore, noted Barclays Research.

Government data showed loan growth (1.3% m/m) outpaced deposit growth (0.6% m/m), resulting in system LDR to rise to 100%, with the weaker deposit growth rate draged dwon by a -0.3% m/m contraction of DBU deposits.

"Though the delayed Fed tapering (Mar-2014 according to Barclays US economists) may alleviate some concerns over potential liquidity outflow from ASEAN markets in the short-term, it remains a risk to system liquidity in the medium- to long-term," assessed Barclays.

"We believe Singapore is relatively defensive as Asia’s key funding center and is still one of the most resilient markets in EM Asia to liquidity outflows," it added.