Singapore’s bank lending jumped 2.3 per cent to settle at S$415.8 billion in November from the previous month.

Business loans jumped 2.9 per cent to S$240.1 billion, while consumer loans climbed 1.4 per cent to settle at S$175.7 billion.

In October, business loans, which account for more than 50 per cent of the total loans, contracted 0.1 per cent, while consumer loans grew merely 0.8 per cent from the previous month.

In the year to November 30, total bank loans in the country grew 30.5 per cent, with business loans rising 42.2 per cent. Lending to professional & private individuals for business purposes jumped 6.8 per cent to $3.9 billion in November, after dropping 22 per cent in the previous month.

The government measures to cool the property market discouraged consumer home loans. Thus it was the steep rise in business lending allowed overall bank lending to report a considerable growth.

But, bank loans are likely to slowdown sharply in the next few months as businesses are concerned over the uncertain global economic conditions.

Commenting on the topic, rating agency Fitch’s director Alfred Chan said, “Singapore's economy will be affected by the development of larger economies like the US and Europe. We don't foresee the current debt and financing issues to be solved anytime soon.”

In 2012, Singaporean economy is expected to grow by 1-3 per cent, down from previous year's growth of 4.8 per cent.