Singapore AI Lending Standards Remain Selective at Major Banks

Singapore AI lending standards remain selective as DBS, OCBC and UOB prioritise established data centre operators with strong financial backing, dependable cash flows and long-term customer contracts.

OCBC said AI-related financing represented less than 1% of its loan book, while UOB's exposure was below 5%.

DBS said data centres accounted for approximately 2% of its lending.

All three banks remain positive about long-term demand but are avoiding speculative developments.

DBS focuses on projects supported by investment-grade hyperscalers, while OCBC requires substantial customer commitments before providing finance.

UOB said it was monitoring broader risks and had no non-performing loans in its AI financing portfolio.

The approach reflects caution over debt-funded AI infrastructure investment.