08-07-2014, 03:50 PM
It seems the growing of Singapore banks cross-border loans, is one of the major concerns of the rating agency...
(not vested in any bank)
Outlook for Singapore’s banking system remains negative: Moody’s
SINGAPORE — Moody’s Investors Service says its the outlook on Singapore’s banks remains “negative” over the next 12 to 18 months.
The risk of rising interest rates and potentially more bad loans are among the factors that prompted Moody’s to issue the negative outlook on Singapore banks, the ratings agency said in a statement today (July 8) accompanying its “Banking System Outlook Singapore” report. It has maintained the same outlook since July last year.
Said Moody’s Vice-President and Senior Credit Officer Eugene Tarzimanov: “Because the banks have rapidly grown both their domestic and cross-border loans in recent years, we expect a moderate increase in problem loans, as interest rates rise, due to the United States Federal Reserve’s expected raising of policy rates, and as asset prices are likely to fall.”
The report looks at Singapore’s banking system in terms of five factors: Operating environment; asset quality and capital; funding and liquidity; profitability and efficiency; and systemic support.
...
http://www.todayonline.com/singapore/out...ive-moodys
(not vested in any bank)
Outlook for Singapore’s banking system remains negative: Moody’s
SINGAPORE — Moody’s Investors Service says its the outlook on Singapore’s banks remains “negative” over the next 12 to 18 months.
The risk of rising interest rates and potentially more bad loans are among the factors that prompted Moody’s to issue the negative outlook on Singapore banks, the ratings agency said in a statement today (July 8) accompanying its “Banking System Outlook Singapore” report. It has maintained the same outlook since July last year.
Said Moody’s Vice-President and Senior Credit Officer Eugene Tarzimanov: “Because the banks have rapidly grown both their domestic and cross-border loans in recent years, we expect a moderate increase in problem loans, as interest rates rise, due to the United States Federal Reserve’s expected raising of policy rates, and as asset prices are likely to fall.”
The report looks at Singapore’s banking system in terms of five factors: Operating environment; asset quality and capital; funding and liquidity; profitability and efficiency; and systemic support.
...
http://www.todayonline.com/singapore/out...ive-moodys