MAS flags risks from rising corporate debt
Posted: 28 November 2012 1323 hrs
SINGAPORE: The Monetary Authority of Singapore (MAS) has warned that bad loans at banks may increase if the economy sours.
It said companies are more leveraged today than they were a year ago, and while balance sheets remain strong, profitability has dropped in line with weakening economic conditions.
"If economic conditions worsen or interest rates rise from current low levels, bank loan quality could deteriorate substantially," the MAS said in its annual Financial Stability Review.
The central bank noted that companies "appear well able to cover their interest expense".
But, the MAS said this could change if rates rise significantly.
- CNA/ir
- wong chee tat :)
No comments:
Post a Comment