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Questioning OCBC's raised loan-growth forecast amid rising credit-risk concerns

Published August 7, 2026 at 11:17 PM UTC

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While OCBC's upgraded loan-growth target may please investors, it also raises questions about the bank's exposure to potential credit-risk headwinds. The Singapore property market has shown signs of cooling, and higher global interest rates could dampen borrowing appetite, especially for higher-risk borrowers. In Indonesia and Malaysia, lingering inflation pressures and tighter monetary policies may increase default rates among small businesses that have expanded rapidly in recent years. By projecting faster loan growth, OCBC could feel pressure to loosen underwriting standards, risking a buildup of non-performing loans. The higher dividend, though attractive, reduces retained earnings that could otherwise buffer against a possible slowdown. Stakeholders such as regulators and consumer advocates may therefore urge the bank to balance optimism with tighter risk management to avoid future losses.