Singapore banks warned on threats from foreign currency loans

The central bank warns of a sudden spike in global risk aversion that can hurt the Singapore banking system.

According to Reuters, Singapore's central bank warned banks of risks from relying on financial markets to back their U.S. dollar and other foreign currency loans.

Citing a MAS report, Reuters noted that while banks in the Southeast Asian city-state are well capitalised and asset quality is improving, their loan-to-deposit ratio (LTD) for foreign currency loans rose to 124 percent in the third quarter from 99.7 percent a year ago.

"As the global financial crisis showed, a sudden spike in global risk aversion can trigger a global U.S. dollar liquidity crunch with knock-on effects on the Singapore banking system," the central bank said in the report.

View the full story here.

Also Read

India tightens microfinance rules to curb borrower overleveraging

Chart of the Week: 1 in 4 Filipinos have used BNPL services

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

I want to download the media kit