Search

NEWS
ECONOMY | Staff Reporter, Singapore
Published: 28 Nov 12
400 views


Singapore must be financially vigilant: MAS

Risks are just around the corner.

According to MAS' 2012 Financial Stability Review, Singapore’s economy and financial system have been resilient through the GFC (Global Financial Crisis).

Here's more from MAS:

Growth has slowed markedly but is still expected to be positive this year and next. Financial markets have remained stable despite financial fragilities and persistent macroeconomic uncertainties globally.

Concerns over liquidity and counterparty credit risks have been muted in the domestic interbank market, while confidence in Singapore Government Securities (SGS) remains high.

Interest rates in Singapore have remained low for a prolonged period of time. This is in line with global trends, which are expected to continue as policymakers in advanced countries have committed to keep monetary policy accommodative over the medium term.

There is therefore a risk that expectations of low interest rates for the foreseeable future will become entrenched.

The need for vigilance is clear.

It is notable that while overall bank loan growth has decelerated since the turn of the year, non-bank loan growth has remained firm, underpinned by the growth of both corporate and household loans in the Domestic Banking Unit (DBU).

The Singapore banking system’s funding profiles and asset quality remain sound, and local banking groups have continued to be well capitalised. These strengths have enabled the banking system’s overall loan base to continue growing.

However, if economic conditions worsen or interest rates rise from current low levels, bank loan quality could deteriorate substantially.

Banks should continue to manage their risks, including maintaining prudent underwriting standards, pricing risks appropriately and managing credit concentration risks effectively. Banks’ business strategies should be commensurate with their risk appetite and risk management controls.

While Singapore Dollar (SGD) funding for domestic lending remains adequate, non-SGD funding risk should be closely monitored as non-SGD loan growth has outpaced non-SGD deposit growth over the past year



Sign up for our newsletter

 

Do you know more about this story? Contact us anonymously through this link.

Click here to learn about advertising, content sponsorship, events & rountables, custom media solutions, whitepaper writing, sales leads or eDM opportunities with us.

To get a media kit and information on advertising or sponsoring click here.

Tags: 2012 Financial Stability Review, Singapore financially vigilant, Singapore vigilant

LATEST ECONOMY JOBS »
PRINT ISSUE »

Subscribe Now
Trains, planes, automobiles and drones

117 views

As goes Hong Kong, so goes Singapore?

964 views

Office property shows no signs of a slowdown

252 views

MOST READ EXCLUSIVES

Singapore’s 20 hotels with most expensive buffet lunches

Singapore’s 20 hotels with most expensive buffet lunches

What is for lunch?

by KRISANA GALLEZO
6 Jun 2014 | 164193 views
 

Singapore’s 20 most expensive hotel suites

Singapore’s 20 most expensive hotel suites

Guess which tops the list at S$20,000 a night.

by KRISANA GALLEZO
30 May 2014 | 138874 views

Singapore’s 18 MBA programmes under $30,000

Singapore’s 18 MBA programmes under $30,000

The cheapest is at SGD15,000.

by KRISANA GALLEZO
17 Jun 2014 | 101454 views
 

10 hottest ad execs and marketers under 40

10 hottest ad execs and marketers under 40

Find out who made it to the list.

by KRISANA GALLEZO
14 May 2014 | 79163 views

Singapore’s 10 most expensive MBA Programmes

Singapore’s 10 most expensive MBA Programmes

The costliest is being offered at over $100,000.

by KRISANA GALLEZO
26 Jun 2014 | 77320 views
 

Singapore’s 10 hottest 40 and under restaurateurs

Singapore’s 10 hottest 40 and under restaurateurs

The list includes a restaurateur as young as 27.

by KRISANA GALLEZO
3 Jul 2014 | 36135 views

Singapore's 7 hot new restaurants in May

Singapore\'s 7 hot new restaurants in May

Have you tried them all?

by KRISANA GALLEZO
5 Jun 2014 | 21787 views
 

Singapore’s 8 hot new restaurants in June

Singapore’s 8 hot new restaurants in June

Have you dropped by to check them out?

by KRISANA GALLEZO
3 Jul 2014 | 20418 views

Korea’s Yoogane to open second outlet in Singapore

Korea’s Yoogane to open second outlet in Singapore

More outlets are soon to come.

by KRISANA GALLEZO
29 May 2014 | 14896 views
 

Pratt & Whitney Singapore office makes you feel like you’re in the outer space

Pratt & Whitney Singapore office makes you feel like you’re in the outer space

Take a sneak peek.

by KRISANA GALLEZO
25 Jun 2014 | 12472 views

Towers Watson Singapore’s Spa Room allows staff to regenerate during lazy hours

Towers Watson Singapore’s Spa Room allows staff to regenerate during lazy hours

Also, check out awesome photos of redesigned meeting rooms and clubhouse.

by KRISANA GALLEZO
9 Jul 2014 | 9347 views
 

Taiwan’s Sufood hit Singapore

Taiwan’s Sufood hit Singapore

Eight more outlets coming in five years.

by KRISANA GALLEZO
12 Jun 2014 | 6725 views

Find out how 3 young men at 20s founded a startup

Find out how 3 young men at 20s founded a startup

At 21, they built a job portal to help young people find their jobs.

by KRISANA GALLEZO
10 Jul 2014 | 3035 views
 

What 3 market leaders can tell you about price comparison sites in Singapore

What 3 market leaders can tell you about price comparison sites in Singapore

Financial price comparison sites face lack of consumer’s confidence.

by KRISANA GALLEZO
10 Jul 2014 | 2601 views

Meet the man who wants to change mobile networking in Singapore

Meet the man who wants to change mobile networking in Singapore

It’s all about ‘the art of click'.

by STAFF REPORTER
7 May 2014 | 1430 views
 

Singapore startup builds world’s first crowdpricing platform

Singapore startup builds world’s first crowdpricing platform

Here’s how you could end up paying less.

by KRISANA GALLEZO
29 May 2014 | 1429 views

RIP Tiger Mandala: What carrier is next to die?

RIP Tiger Mandala: What carrier is next to die?

See why Singapore based carriers are the least advantaged.

by KRISANA GALLEZO
27 Jun 2014 | 1423 views
 

I bet you’ll cry after watching this: Singaporeans say ‘thank you’ to migrant workers

I bet you’ll cry after watching this: Singaporeans say ‘thank you’ to migrant workers

It has been viewed and shared nearly 425,000 times.

by KRISANA GALLEZO
27 Jun 2014 | 1364 views

Might as well say, what the :pluck?

Might as well say, what the :pluck?

Ann Siang Hill and Club Street welcome a new 45-seat dining enclave.

by KRISANA GALLEZO
26 Jun 2014 | 1161 views
 

Singpost acquires Store House in Hong Kong for $12.2m

Singpost acquires Store House in Hong Kong for $12.2m

Here's how management compares HK's self storage market with Singapore's.

by KRISANA GALLEZO
11 Jul 2014 | 1132 views

See how 99.co plans to pacify exasperated house-hunters in Singapore

See how 99.co plans to pacify exasperated house-hunters in Singapore

Tired of bogus listings?

by CARMINA JARIEL
22 May 2014 | 1116 views
 

KepLand in the spotlight: After Equity Plaza, what's next to sell?

KepLand in the spotlight: After Equity Plaza, what\'s next to sell?

Keppel Land determined to hold its stake in MBFC Tower 3.

by KRISANA GALLEZO
26 Jun 2014 | 1115 views

Experience in 3D how your neighborhood will look like if sea levels rise

Experience in 3D how your neighborhood will look like if sea levels rise

This site is hitting almost a million unique visitors already.

by KRISANA GALLEZO
13 Jun 2014 | 971 views
 

Take a tour at Potato Head Folk’s whimsical dining enclave

Take a tour at Potato Head Folk’s whimsical dining enclave

Murals on the walls inspired by 1930s children’s books are fascinating.

by KRISANA GALLEZO
10 Jul 2014 | 959 views

Check out this WhatsApp like program for online chatting

Check out this WhatsApp like program for online chatting

This startup is on its final stages of closing $500,000 fund.

by KRISANA GALLEZO
19 Jun 2014 | 854 views
 

NUS alumni launch Singapore’s first business-sourcing platform

NUS alumni launch Singapore’s first business-sourcing platform

Its total seed funding now exceeded $100,000.

by KRISANA GALLEZO
26 Jun 2014 | 813 views

Check how this campaign compelled many Singaporeans to quit smoking

Check how this campaign compelled many Singaporeans to quit smoking

It claims of reversing five-year upward trend in smoking.

by KRISANA GALLEZO
20 Jun 2014 | 755 views
 

Get a taste of this new food hub offering in-house brewed beer

Get a taste of this new food hub offering in-house brewed beer

See how a game developer and an aircraft engineer pursue their passion for cooking.

by KRISANA GALLEZO
19 Jun 2014 | 694 views

Meet the man behind homegrown K.G. Tan & Co. PAC

Meet the man behind homegrown K.G. Tan & Co. PAC

The rest is history after he founded the firm in 2006.

by KRISANA GALLEZO
25 Jun 2014 | 670 views
 

AdHocSpace creates first short-term space booking portal in Asia

AdHocSpace creates first short-term space booking portal in Asia

Will it become the AirBnB for short-term commercial space rental?

by KRISANA GALLEZO
12 Jun 2014 | 595 views
close Don't Show Again

STAY INFORMED! Get our free weekly newsletter