Why banks aren't doing enough if bad debts don't rise during hard times

It means they’re not taking on sufficient risks, says MAS’ Menon.

CNBC reported Singapore's central bank chief Ravi Menon saying that many banks in Asia have seen asset quality deteriorate in a difficult post-crisis climate, but the rise in non-performing loans should be assessed in the context of that environment.

"Banks are in the business of inter-mediating risks. When risks materialize, as they sometimes do when those who borrow get into difficulties, NPLs must rise," Menon said.

Read more here.
 

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