MAS deeply concerned over Singapore banks’ rising offshore lending

Are Singapore banks secure?

The Monetary Authority of Singapore has expressed its concern over local banks’ rising exposure to offshore debt.

According to the MAS’ Financial Stability Report 2014, foreign currency exposures in the banking system have risen alongside the growth in cross-border lending, and a tightening of global liquidity conditions could pose funding risks to the banks

The MAS has warned that banks should continue to maintain good credit underwriting practices and ensure that provisioning is prudent and robust to potential stress conditions. Banks should also continue to monitor and address risks arising from stresses to foreign currency funding and liquidity.

 

 

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