Broad-based growth across segments driven by robust deposits and strong capital buffers, despite macroeconomic headwinds.

Banking Asset Growth Trends

Singapore's banking sector total assets grew at a compound annual growth rate (CAGR) of 6.8% from 2021 to 2024, according to remarks by Monetary Authority of Singapore (MAS) managing director Chia Der Jiun in July 2025. The growth was broad-based across banking, fund management, and insurance segments, and contributed to the financial services sector expanding 6.8% in 2024 alone, compared to 3.1% in 2023, as reported in the MAS annual report and covered by The Straits Times in July 2025. The financial sector now accounts for approximately 14% of Singapore's GDP, Deputy Prime Minister and MAS chairman Gan Kim Yong said.

The 6.8% CAGR for banking assets exceeded the broader financial services sector's average annual growth rate of 4.7% over the same period, highlighting the banking segment's outsized contribution to overall sector performance.

CAGR / Average Growth (%) (%)Source: Orionmano Industries

Funding and Capital Strength

The banking system's expansion rests on strong funding foundations. Non-bank deposits constituted more than 80% of total banking system funding as of September 2024, according to the MAS Financial Stability Review published in November 2024. Both Singapore dollar and foreign currency loan-to-deposit ratios remained below 100%, indicating that credit growth remained within the envelope of deposit funding.

Local banking groups maintained aggregate common equity tier 1 (CET1) capital adequacy ratios (CAR) of 16.7% as of Q3 2024, well above regulatory requirements, the same review reported. Provisioning coverage remained healthy at 252% for local banking groups as of Q3 2024, alongside improvements in their non-performing loan (NPL) ratios. The MAS Financial Stability Review for 2025, released in April 2025, documented that NPL ratios declined across most sectors in 2024. The exceptions were the transport and storage sector and the accommodations and food services (AFS) sector, which saw upticks in their NPL ratios—the latter weighed down by cost pressures and demand shortfalls.

DBS reported strong balance sheet metrics consistent with system trends, noting in its 2023 annual report "ample liquidity, prudent general allowance reserves and healthy capital ratios" as buffers against uncertainties.

Sector Context and Regulatory Outlook

The financial sector's average growth rate of 4.7% for 2021–2024 is on track to meet the Industry Transformation Map (ITM) 2025 target of 4% to 5% per annum over 2021–2025, Chia Der Jiun noted. The sector has also exceeded targets on employment: average annual net jobs created in the financial sector were 4,400 over 2021–2024, above the ITM 2025 target range of 3,000 to 4,000. More than 90% of these positions went to locals, MAS reported.

MAS deputy managing director for markets and development Leong Sing Chiong said that new jobs spanned both tech-related and non-tech roles including business, portfolio, and relationship management, as reported by The Straits Times.

However, MAS has signaled caution about the trajectory ahead. The central bank warns that the pace of growth seen in recent years is unlikely to persist, as the industry braces for slower global growth and tariff uncertainties emanating from shifting trade policy. The current strong capital and liquidity buffers—with CET1 CAR of 16.7% and provisioning coverage of 252%—position the banking sector to absorb potential credit shocks, but the macroeconomic tailwinds that supported the 6.8% CAGR are expected to diminish.

The financial sector's transformation remains a work in progress, with the ITM 2025 framework serving as the benchmark for both growth and employment outcomes. The industry has delivered above-target job creation and maintained growth within the plan's parameters, but the external environment is shifting. MAS's implicit guidance is that stakeholders should recalibrate expectations: the 6.8% CAGR for banking assets over 2021–2024 reflected a period of post-pandemic recovery and low interest rates that may not recur.

For analysts tracking Singapore's financial sector, the key metrics to monitor going forward will be NPL trends in the transport and AFS sectors, deposit growth momentum in a potentially lower interest rate environment, and the extent to which tariff-related disruptions weigh on trade finance and credit demand. The banking system enters this period of uncertainty from a position of strength, but the moderation ahead is likely to test the resilience that the 2021–2024 growth phase has built.