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| FINANCIAL MARKET ACTIVITY |
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| Lending in the Domestic
Market |
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Total assets of the commercial banks
rose 2.7% to S$362.5 billion in 2003. Commercial bank lending
was robust, supported by household lending, particularly mortgages.
Housing loans were boosted by bank-originated Housing &
Development Board (HDB) loans which accounted for S$4.5 billion
of loans in 2003. S$2.9 billion were new bank loans and S$1.6
billion were due to refinancing (See Box 14). Commercial bank
lending to non-bank customers rose to S$171.4 billion at end
last year, an increase of S$10.2 billion over the year. Household
lending accounted for S$52.4 billion
of total non-bank lending. Part of the increase was due to the
integration of the loan portfolios of two finance companies,
Overseas Union Trust and OCBC Finance with the banking sector
during the year.
As lending among resident banks increased S$3.9 billion, loans
to banks outside Singapore1 declined S$3.2 billion,
resulting in a modest S$730.5 million rise in overall interbank
loans in 2003. This decline in loans to banks outside Singapore
was consistent with the greater allocation of funds to non-bank
lending which picked up in 2003. |
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| Deposits of non-bank customers grew
a respectable 7.8% in 2003, compared to the mild 1.3% contraction
in 2002. Deposits rose to S$194.2 billion, a S$14.1 billion
increase from 2002, part of which was attributed to the integration
of Overseas Union Trust and OCBC Finance with the banking sector.
Fixed deposits increased S$7.7 billion during the year, while
savings deposits grew S$3.6 billion. |
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