Losing ground: Consumer loan growth crashed to seven-year low in November

Blame it on shrinking car loans.

Singapore’s three largest banks experienced the slowest pace of consumer loan growth in November, on back of a rapid decrease in car loans and the continued weakness in the local property market.

According to Maybank Kim Eng, consumer loan growth slowed to 4.9% year-on-year in Nov, its slowest in 7.5 years. Growth in all subsectors was weak, paced by mortgages (+6.2% YoY), car loans (-19.4% YoY) and share financing (-13.9% YoY).

“Car loans have been shrinking for 24 months. This came about after MAS re-introduced financing
restrictions on vehicle loans in 2013. Housing loans accounted for 74.9% of DBU consumer loans as at end-November. Car loans, 3.7%,” stated Maybank Kim Eng.