DBS Group Holdings' better-than-expected results capped a solid third-quarter earnings season for local banks and sent a strong signal that the worst of the credit crunch might be over.

Singapore was the first Asian economy to slide into a recession. Businesses, large and small, soon felt the effects, with gun-shy banks curtailing lending. They cut back on vital loans to the business community and set aside more funds to deal with any loans that might turn sour.

However, there have been increasing signs this year that money is again flowing and lending has been stepped up, putting added focus on the banks' third-quarter results.

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