During the last few years, Singapore has established itself as a renowned international financial center. Among all the branches of the financial industry, the banking sector has emerged as one of Singapore’s key players for economic growth. Singapore is currently the third largest banking center in Asia hosting over 100 branches of foreign banks and 6 local ones. Among the factors leading to Singapore banking system’s success one can take into account:
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Singapore is famous for attracting high net worth individuals, hence the development of the private banking sector. At the moment, private banks in the city-state administer some of the world’s largest foreign investors' liquid assets which is why Singapore was also dubbed “Switzerland of Asia”.
The development of the hedge fund industry has attracted foreign entrepreneurs from all over the world, transforming Singapore into one of the most desirable destination for opening a private bank in. This sector is expected to grow over 9% in the next 5 years.
A recent survey released by Moody’s, one of the most prestigious credit rating agencies in the world, shows the banking industry in Singapore is expected to grow in the next 2 years. Moody’s report that Singapore banks will continue to develop due to the high rate of domestic loans that will be contracted. Both the household and corporate loan sectors are expected to grow in 2016.
Moody’s also commended the Government’s proposal for a new legislation which will enable foreign investors to contract loans easier.
For more reasons to invest in the banking sector, do not hesitate to contact our Singapore consultants in company formation.