Standard & Poor's cut the outlook on Singapore's banking industry to stable, from positive. S&P attributes the cut to the competition amongst banks, which is likely to limit profit margins this year. This is despite the pick-up in loan growth and stable earnings. S&P also said that double-digit growth rates could be less likely in the medium term, as the economy matures. S&P said that this factor is likely to limit the banks' opportunities for enjoying higher profit margins from their domestic operations. S&P further said that Singapore's banks face the challenge of competition in a saturated home market and regional expansion risk. S&P said factors such as uncertainty over the movement of interest rates, concern over high oil prices, and the outbreak of avian flu could hamper the banks' growth prospects.