Search

NEWS
ECONOMY | Staff Reporter, Singapore
Published: 28 Nov 12
474 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 »
  • No jobs posted on this category.
PRINT ISSUE »

Subscribe Now
What factors are keeping expats rooted in Singapore?

1067 views

What factors are keeping expats rooted in Singapore?

581 views

Can Asian private equity outgrow the west?

259 views

MOST READ EXCLUSIVES

The 10 richest Singaporeans

The 10 richest Singaporeans

Altogether, their total amount of wealth dropped by 20% to US$32.5 billion.

by KRISANA GALLEZO
13 Apr 2015 | 103132 views
 

16 items that are a tad cheaper in Singapore than in Hong Kong

16 items that are a tad cheaper in Singapore than in Hong Kong

Coffee lovers need not go farther for a cheaper cup of cappuccino.

by KRISANA GALLEZO
20 Mar 2015 | 102744 views

Singapore’s 8 hottest 40 and under hotel chefs

Singapore’s 8 hottest 40 and under hotel chefs

Check out and be inspired from their humble beginnings before rising the ranks.

by KRISANA GALLEZO
27 Mar 2015 | 13705 views
 

Chow Tai Fook opens second store in Singapore

Chow Tai Fook opens second store in Singapore

It's a 1,000-square feet new jewellery shop on Orchard Road.

by KRISANA GALLEZO
26 Feb 2015 | 12530 views

This is a woman’s world: CRIB launches Singapore’s first business and lifestyle incubator for women

This is a woman’s world: CRIB launches Singapore’s first business and lifestyle incubator for women

Find out what the three key platforms of CRIB are.

by KRISANA GALLEZO
10 Mar 2015 | 8366 views
 

The New Black hits Singapore with rarest green coffee

The New Black hits Singapore with rarest green coffee

It also boasts of its Impossible Collection curated by the ‘world’s rockstar roasters'.

by KRISANA GALLEZO
5 Mar 2015 | 5024 views

Too many business cards? Why don’t you try Sansan’s business card management service?

Too many business cards? Why don’t you try Sansan’s business card management service?

After Singapore, this contract management company plans to expand in the APAC region.

by KRISANA GALLEZO
12 Feb 2015 | 4571 views
 

Check out this integrated office cum lab of Friesland Campina in Singapore

Check out this integrated office cum lab of Friesland Campina in Singapore

A curved glass wall resulted in a 90% open-plan office.

by KRISANA GALLEZO
17 Feb 2015 | 4493 views

All the single ladies: Here’s Singapore’s first female-centric dating app for you

All the single ladies: Here’s Singapore’s first female-centric dating app for you

Its female-friendly features help women find serious daters.

by LEE ANNE BABIERRA
20 Apr 2015 | 4281 views
 

Spencer Ogden gets funky with its newest trademark space in Singapore

Spencer Ogden gets funky with its newest trademark space in Singapore

The company invested over $1M to make this signature office possible.

by KRISANA GALLEZO
5 Feb 2015 | 3626 views

Want to be hands-on with your ideal home setting?

Want to be hands-on with your ideal home setting?

Commune is opening an Experience Centre for meticulous homeowners.

by KRISANA GALLEZO
23 Mar 2015 | 2999 views
 

Office in the sky: How’s having a meeting in the clouds?

Office in the sky: How’s having a meeting in the clouds?

Check out ACL Asia Pacific’s Cumulonimbus, Altostratus and Cirrus rooms.

by KRISANA GALLEZO
1 Apr 2015 | 2964 views

Get to know the husband-and-wife duo behind the novice 3E Accounting

Get to know the husband-and-wife duo behind the novice 3E Accounting

This local accounting firm expanded from 2 to 35 members in just 4 years.

by KRISANA GALLEZO
24 Apr 2015 | 2675 views
 

Lazada Singapore CEO Martell Hardenberg talks about his “Happy Customer” philosophy

Lazada Singapore CEO Martell Hardenberg talks about his “Happy Customer” philosophy

Find out what other goals the 27-year-old has for the company.

by KRISANA GALLEZO
27 Mar 2015 | 2631 views

Take a look inside INSEAD’s $55m leadership development centre in Singapore

Take a look inside INSEAD’s $55m leadership development centre in Singapore

It marks the fulfillment of a vision too ambitious to achieve 15 years ago.

by KRISANA GALLEZO
1 Apr 2015 | 2451 views
 

LawCanvas saves the day: Easy legal documents in under a minute

LawCanvas saves the day: Easy legal documents in under a minute

The founders revolutionized the legal industry despite having different backgrounds.

by KRISANA GALLEZO
2 Mar 2015 | 2406 views

Take a sneak peek at Equinix’s $300m international business exchange data centre in Singapore

Take a sneak peek at Equinix’s $300m international business exchange data centre in Singapore

Which took almost a decade to finish.

by KRISANA GALLEZO
27 Apr 2015 | 2165 views
 

PocketMath makes buying mobile ad impressions easier

PocketMath makes buying mobile ad impressions easier

It integrates over 20 ad exchanges and offers over 20B impressions a day.

by KRISANA GALLEZO
9 Feb 2015 | 1824 views

#OnTheContrary campaign reveals the ‘real struggles’ of entrepreneurs

#OnTheContrary campaign reveals the ‘real struggles’ of entrepreneurs

Rags to riches stories are fabulous, but here’s the real deal.

by KRISANA GALLEZO
27 Mar 2015 | 1131 views
 

Le Petit Paradis recently rebranded as Enoch’s European

Le Petit Paradis recently rebranded as Enoch’s European

It’s a full-fledged contemporary European restaurant blossomed from a motorcycle accident.

by KRISANA GALLEZO
22 Apr 2015 | 1068 views

Find out what it’s like going into business with your in-law

Find out what it’s like going into business with your in-law

A young entrepreneur teamed up with his father-in-law to redefine home entertainment needs.

by KRISANA GALLEZO
27 Mar 2015 | 865 views
 

What is the future of the sports business in Singapore?

What is the future of the sports business in Singapore?

Can a new billion-dollar stadium give Singapore the edge it needs to compete for world-class sporting events?

by STAFF REPORTER
20 Mar 2015 | 755 views

Fragrance Du Bois to launch a new scent this year

Fragrance Du Bois to launch a new scent this year

Also, check out its pop-up boutique at TANGS Orchard open until April 26.

by KRISANA GALLEZO
17 Apr 2015 | 589 views
 

Megafash sets the stage for local entrepreneurs to introduce indie brands

Megafash sets the stage for local entrepreneurs to introduce indie brands

It plans to expand in Malaysia and Indonesia.

by KRISANA GALLEZO
20 Apr 2015 | 387 views
close Don't Show Again

STAY INFORMED! Get our free weekly newsletter