On top of reports of increased credit card spending at the 2014 Great Singapore Sale comes further encouraging news that banks are increasing the amounts they are willing to lend to consumers, it appears.
Reuters reported recently that while total bank lending in the last month appeared to be unchanged, this hid a rise in loans for housing and consumer credit. According to figures supplied by the Monetary Authority of Singapore (MAS), loans for mortgages and bridging loans increased by a huge 7.0% year-on-year to S$172.6 billion.
Channel News Asia came in with more data that showed that loans for consumers grew slightly to S$231.1 billion. Credit card lending is also up by 6.8% to S$9.75 billion in the year to July, CNA said.
So, what does that mean to you, the Singapore-based consumer? In short, it means that confidence is returning to the banking sector after years of global stagnation and doubt, and the financial institutions are finally willing to lend to the every customer in the street.
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Undoubtedly, that has an awful lot to do with MAS enforcing stricter rules of lending to ensure that fewer risky loans are made, and that should soon be reflected in figures that will show fewer bad debts in Singapore.
On top of that, historically low interest rates mean that banks have had to fight for each and every customer, making it very much a buyer’s market. That’s forced down retail banking interest rates on loans and credit cards, making them more attractive to customers. Credit card spending has grown because of increased consumer confidence coupled with great loyalty deals and competitive rates.
It still pays to shop around for the best loan and credit card deals before committing to any financial venture. That’s why Enjoy Compare makes it quick and easy to do both while encouraging responsible lending and spending.