At the end of 1999, there were 139 commercial banks in Singapore, of which eight were local. Admission criteria for new banks continued to be based on reputation, financial soundness, asset size, extent of international operations and potential contribution to Singapore as a financial centre.
Banks are free to quote their own interest rates.
In addition, they can offer savings accounts with interest computed on a daily or monthly basis. These changes are in line with moves to liberalise the banking sector, enabling banks to offer a wider range of products. The slower growth in fixed deposits was partly attributable to generally lower interest rates in 1999, as well as a general shift into bond and equity investments. Total loans disbursed to non-bank customers declined by 3 per cent as against 6 per cent growth in 1998, which was due to the inclusion of POSB's loans. Credit growth in 1999 was affected by continued economic uncertainty in the region and the switch by companies from loans to equity issues for their financing needs, given the buoyant stock market.