, Singapore

Aggressive international expansion could heighten risks for DBS, OCBC: Moody's

But UOB is quite safe.

DBS and OCBC are exposed to greater country-related risks because of their aggressive expansion into international markets, a report by Moody's revealed today.

The report stated that while all three banks have robust financial fundamentals, the difference in their geographic mix is among the factors could lead to credit differentiation over time.

Moody's noted that while all three banks are expanding their cross-border transactions, UOB's proportionately larger exposure to Singapore and lower share of loans in banking markets that Moody's considers riskier than Singapore — such as China, Thailand and Indonesia— lower its exposure to country-related risks when compared to OCBC and
DBS.

"The banks' different geographic mixes could increase risks for OCBC and DBS more than they would for UOB," said Eugene Tarzimanov, a Moody's Vice President and Senior Credit Officer.

- See more at: https://sbr.com.sg/financial-services/news/aggressive-international-expansion-could-heighten-risks-dbs-ocbc-moodys#sthash.ztdFJexG.dpuf

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