Nov 27 2015, 11:13 PM
QUOTE
Singapore Banks Face Risk From Weaker Credit, FX Moves: MAS
Chanyaporn Chanjaroen Christopher Langner
@Asia_G3
November 27, 2015 — 12:00 PM MYT Updated on November 27, 2015 — 1:33 PM MYT
Weaker corporate balance sheets and currency market volatility pose risks to Singapore lenders, though the local banking system remains resilient, the Monetary Authority of Singapore said Friday.
Non-performing loans have increased, and moves in emerging Asian currencies "could exacerbate foreign currency mismatch risks for banks in Singapore," the Singapore central bank said in its annual financial stability report.
"The turning credit cycle poses risks to Singapore’s banking system. Asset quality remains healthy, but there are signs of increased credit risks alongside weaknesses in corporate balance sheets," the MAS said.
The non-performing loan ratio among Singapore banks rose to 1.5 percent in the third quarter of 2015, from 1.1 percent a year earlier, the central bank said. Bad loans have risen in the manufacturing sector, and banks with exposure to trade may see higher credit risks, the monetary authority said.
“It is important for our financial sector to continue to be vigilant to new or growing risks as highlighted in the report as external headwinds and contagion risks have intensified,” MAS deputy managing director Ong Chong Tee said. However, the report also demonstrates that Singapore’s banks, companies and households are “resilient to potential vulnerabilities and shocks,” he added.
http://www.bloomberg.com/news/articles/201...-moves-mas-says
This post has been edited by AVFAN: Nov 27 2015, 11:14 PMChanyaporn Chanjaroen Christopher Langner
@Asia_G3
November 27, 2015 — 12:00 PM MYT Updated on November 27, 2015 — 1:33 PM MYT
Weaker corporate balance sheets and currency market volatility pose risks to Singapore lenders, though the local banking system remains resilient, the Monetary Authority of Singapore said Friday.
Non-performing loans have increased, and moves in emerging Asian currencies "could exacerbate foreign currency mismatch risks for banks in Singapore," the Singapore central bank said in its annual financial stability report.
"The turning credit cycle poses risks to Singapore’s banking system. Asset quality remains healthy, but there are signs of increased credit risks alongside weaknesses in corporate balance sheets," the MAS said.
The non-performing loan ratio among Singapore banks rose to 1.5 percent in the third quarter of 2015, from 1.1 percent a year earlier, the central bank said. Bad loans have risen in the manufacturing sector, and banks with exposure to trade may see higher credit risks, the monetary authority said.
“It is important for our financial sector to continue to be vigilant to new or growing risks as highlighted in the report as external headwinds and contagion risks have intensified,” MAS deputy managing director Ong Chong Tee said. However, the report also demonstrates that Singapore’s banks, companies and households are “resilient to potential vulnerabilities and shocks,” he added.
http://www.bloomberg.com/news/articles/201...-moves-mas-says
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