Bank jobs in Singapore under pressure
Banks are seeing their margins squeezed by a weak macroeconomy and some like Barclays and Standard Chartered have initiated job cuts globally. Singapore, being a key financial centre in Asia, is not immune to these layoffs.
By Linette Lim
Posted 28 Dec 2015 17:41 Updated 28 Dec 2015 23:28
SINGAPORE: The financial sector is a key source of jobs in Singapore, employing more than 200,000 people as of September, according to data from the Ministry of Manpower (MOM). It also contributes to more than 12 per cent of the gross domestic product (GDP).
While latest MOM statistics have showed that there is still overall job growth in the sector - with 2,600 jobs added in the third quarter - some areas, from support functions to equities-related and investment banking roles, have come under pressure.
Global banks are seeing their margins squeezed by a weak macroeconomy and higher costs arising from tighter regulatory oversight. Additionally, across the sector worldwide, nearly 100,000 banking jobs were estimated to have been cut in 2015, according to an estimate by the Financial Times.
Major banks like Standard Chartered, Barclays, and Deutsche Bank have initiated job cuts globally and as Singapore is a key financial centre in Asia, it is not immune from these layoffs.
"We have seen a lot of offshoring happening, not just this year, but in 2014 as well," said Robert Walters Southeast Asia's managing director, Mr Toby Fowlston. "We've seen areas like product control downsize in a number of banking businesses, and also some of the back-office functions as well, where we've seen that shipped to cheaper cost locations."
But the concern is more than just over jobs being moved to lower-cost jurisdictions. Trading and deal-making is drying up amid a more uncertain macro environment and this is threatening equities-related and investment banking jobs. At the same time, new business models are disrupting traditional banking - a point underscored by Prime Minister Lee Hsien Loong in a speech last month.
"Digitisation, fintech - those are challenges to the traditional bank model," said Mr Ho Kok Yong, Financial Services Industry leader at Deloitte Singapore. "I think with digitisation, online banking, there's even greater reason for banks to actually cut headcount. So I would say that in the next one or two years, we will see a lot of this happening.
On the other hand, there are areas that will be in need of headcount, with vacancies exceeding the number of applicants.
Said Adecco Singapore's country manager Femke Hellemons: "The increasing emphasis on corporate governance, risk management, also drives the demand for compliance, risk management, and operations professionals. At the same time, we see a strong demand for IT finance engineers, and also relationship managers, as banks are looking to market customised solutions for their corporate clients."
As banks reorganise their business to cope with a changing business environment, recruitment consultancies have said they see hiring managers in banks here adopt a wait-and-see approach. According to Robert Walters, this has given rise to a greater use of contracting, with staff coming in on six- to 12-month fixed term contracts.
- CNA/hs
- wong chee tat :)
Tuesday, December 29, 2015
How financial technology will impact Singapore in 2016
How financial technology will impact Singapore in 2016
Financial technology is seeing explosive growth. The Monetary Authority of Singapore wants to cultivate this growth as part of its Smart Financial Centre initiative. Channel NewsAsia looks at what this means for the financial industry in 2016.
By Patrick John Lim
Posted 28 Dec 2015 22:43 Updated 28 Dec 2015 23:25
SINGAPORE: Financial technology, which is also known as fintech, is seeing explosive growth.
New technologies in payment, data management and security have sprung up over the past year, and a few local banks have set up Innovation Centres to keep abreast with developments.
The Monetary Authority of Singapore (MAS) wants to cultivate this growth as part of its Smart Financial Centre initiative. Channel NewsAsia looks at what this means for the financial industry in the coming year.
BECOMING A SMART FINANCIAL CENTRE
As Singapore pushes on to be a Smart Nation, it is important that industries keep ahead of the curve. This is especially true for the finance industry, where new technologies are challenging the way business is being done.
Embracing new technology is also important for Singapore to maintain its status as a regional financial hub, and MAS recognises that Singapore needs to be a Smart Financial Centre.
Said Mr Thomas Zink, a research manager at IDC Financial Insights: "It will strengthen its position, it will create new jobs and it will grow their expertise in the market. For start-ups, it also makes a lot of sense because of the ease of doing business in Singapore as well as the access to a lot of financial institutions that are headquartered here as well as Singapore's geographic location at the heart of ASEAN.
"Lastly for financial institutions, it will make sense to have access to new ideas, new businesses, new concepts that will help them to transform their business in light of the digital change we're going through."
Much of the fintech developments in 2015 have centred around improving services, from mobile banking to payments. MAS hopes to take this one step further by laying the groundwork for banks and financial institutions to leverage information to serve consumers better.
This includes developing a set of common standards to allow different applications to operate together seamlessly, paving the way for data-sharing between organisations.
SECURITY, CYBER SECURITY NEED TO MOVE FORWARD TOO
As new technologies continue to surface, an expert said it is critical for security and cyber security to move in tandem with new innovation.
Said Gartner’s principal research analyst, Anmol Singh: "We will see more comprehensive risk management for the digitalisation that we are seeing in the banking industry. We are definitely going to see more of fraud detection and identity proofing technologies ... Security approaches are going to innovate and provide you with better solutions.”
Going forward, the central bank is placing the onus on banks to drive innovation. It said financial institutions are free to experiment with new ideas without seeking regulatory endorsement, as time to market can be critical.
"MAS will most likely follow through with the approach that (MAS managing director) Ravi Menon pointed out - that we are very supportive of banks partnering with fintech but it's ultimately the responsibility of banks to make sure that everything is in order, they are compliant, they assess the risk properly that comes from such a solution,” said Mr Zink.
“They also said they are open to provide guidance where necessary, but what they don't want to get into is give some form of approval to a specific vendor for a specific solution. That might incentivise banks to neglect their due diligence to some degree, and that's a very smart approach from MAS,” he added.
MAS has formed a new arm, the Fintech & Innovation Group, aimed at creating a conducive ecosystem for innovation.
The central bank has also committed S$225 million over the next five years under its Financial Sector Technology and Innovation Scheme, to support this innovation ecosystem.
- CNA/dl
- wong chee tat :)
Financial technology is seeing explosive growth. The Monetary Authority of Singapore wants to cultivate this growth as part of its Smart Financial Centre initiative. Channel NewsAsia looks at what this means for the financial industry in 2016.
By Patrick John Lim
Posted 28 Dec 2015 22:43 Updated 28 Dec 2015 23:25
SINGAPORE: Financial technology, which is also known as fintech, is seeing explosive growth.
New technologies in payment, data management and security have sprung up over the past year, and a few local banks have set up Innovation Centres to keep abreast with developments.
The Monetary Authority of Singapore (MAS) wants to cultivate this growth as part of its Smart Financial Centre initiative. Channel NewsAsia looks at what this means for the financial industry in the coming year.
BECOMING A SMART FINANCIAL CENTRE
As Singapore pushes on to be a Smart Nation, it is important that industries keep ahead of the curve. This is especially true for the finance industry, where new technologies are challenging the way business is being done.
Embracing new technology is also important for Singapore to maintain its status as a regional financial hub, and MAS recognises that Singapore needs to be a Smart Financial Centre.
Said Mr Thomas Zink, a research manager at IDC Financial Insights: "It will strengthen its position, it will create new jobs and it will grow their expertise in the market. For start-ups, it also makes a lot of sense because of the ease of doing business in Singapore as well as the access to a lot of financial institutions that are headquartered here as well as Singapore's geographic location at the heart of ASEAN.
"Lastly for financial institutions, it will make sense to have access to new ideas, new businesses, new concepts that will help them to transform their business in light of the digital change we're going through."
Much of the fintech developments in 2015 have centred around improving services, from mobile banking to payments. MAS hopes to take this one step further by laying the groundwork for banks and financial institutions to leverage information to serve consumers better.
This includes developing a set of common standards to allow different applications to operate together seamlessly, paving the way for data-sharing between organisations.
SECURITY, CYBER SECURITY NEED TO MOVE FORWARD TOO
As new technologies continue to surface, an expert said it is critical for security and cyber security to move in tandem with new innovation.
Said Gartner’s principal research analyst, Anmol Singh: "We will see more comprehensive risk management for the digitalisation that we are seeing in the banking industry. We are definitely going to see more of fraud detection and identity proofing technologies ... Security approaches are going to innovate and provide you with better solutions.”
Going forward, the central bank is placing the onus on banks to drive innovation. It said financial institutions are free to experiment with new ideas without seeking regulatory endorsement, as time to market can be critical.
"MAS will most likely follow through with the approach that (MAS managing director) Ravi Menon pointed out - that we are very supportive of banks partnering with fintech but it's ultimately the responsibility of banks to make sure that everything is in order, they are compliant, they assess the risk properly that comes from such a solution,” said Mr Zink.
“They also said they are open to provide guidance where necessary, but what they don't want to get into is give some form of approval to a specific vendor for a specific solution. That might incentivise banks to neglect their due diligence to some degree, and that's a very smart approach from MAS,” he added.
MAS has formed a new arm, the Fintech & Innovation Group, aimed at creating a conducive ecosystem for innovation.
The central bank has also committed S$225 million over the next five years under its Financial Sector Technology and Innovation Scheme, to support this innovation ecosystem.
- CNA/dl
- wong chee tat :)
Singapore IPO market languishes as Hong Kong surges
Singapore IPO market languishes as Hong Kong surges
TODAY reports: As the Singapore Exchange languishes with only one IPO listed on the mainboard this year, Hong Kong has been on a tear as it reclaims its position as the world’s top IPO market.
By Angela Teng, TODAY
Posted 29 Dec 2015 09:06
SINGAPORE: The number of initial public offerings (IPO) on the Singapore Exchange (SGX) plunged 57 per cent this year from last year, with analysts attributing the lacklustre performance to a weak market outlook and competition from a much stronger Hong Kong.
Only 13 IPOs were listed on the SGX this year — just one on the mainboard and the other 12 on Catalist, raising a total of about S$630 million. This compared to the 30 IPOs last year, of which 12 were on the mainboard and 18 on the junior board, raising about S$3.5 billion altogether.
BHG Retail Real Estate Investment Trust (REIT) raised S$394.2 million when it listed on the mainboard this month, making it the biggest IPO in Singapore for the year. The units closed unchanged at S$0.80 on its debut day after the underwriter emerged to support the market. At the close on Monday (Dec 28), BHG Retail REIT units remained at S$0.80. Most of the Catalist-listed IPOs, which had offer prices ranging from S$0.20 to S$0.46, gave investors little cheer this year.
Mr Ernest Lim, a remisier at CIMB Securities, said: “Performance of the new listings had more than half registering negative returns, with five of them registering almost 40 per cent drops since their debut. While two of them registered flat returns and two of them, namely Jumbo and Singapore O&G, soared 48 per cent and 198 per cent, respectively … the overall performance is not exactly fantastic.”
“Most clients traded less this year as they are cautious on the overall market environment, slowing China economy, weak Singapore economy and generally lacklustre corporate results,” he added.
As the SGX languishes, Hong Kong has been on a tear as it reclaims its position as the world’s top IPO market. In the first 11 months of the year, 71 companies listed in the city, raising a total of US$31.2 billion (S$43.9 billion), accounting for almost 16 per cent market share of IPO funds worldwide, the South China Morning Post reported.
IG market strategist Bernard Aw said: “Firstly, the red-hot Hong Kong IPO market may have drawn companies away from listing in Singapore … Hong Kong benefited from its proximity to mainland China, compared to Singapore. We can see this advantage quite clearly from the growing number of mainland firms listing in Hong Kong.”
“Secondly, the higher financial bar for a mainboard listing in Singapore (minimum market value of S$150 million or pre-tax profit of at least S$30 million) may have continued to disqualify medium-sized companies, which earned about S$20 million.”
The poor IPO market came amid a turbulent year for the SGX. In June, the bourse had to pony up an estimated S$20 million to address gaps in its service recovery capabilities after it was reprimanded by the Monetary Authority of Singapore over two trading outages last year, one of which brought trading to a halt for hours and hurt Singapore’s reputation as a financial centre.
In July, veteran banker Loh Boon Chye took over from Mr Magnus Bocker as chief executive to spearhead a revival in the fortunes of SGX. In September, local shares plunged in line with other Asian markets following a slew of weak Chinese economic data, with the Straits Times Index falling past the key 2,800 mark. On Monday, the benchmark ended at 2,875.32 in thin year-end trade.
The SGX toughened up its rules on corporate governance in October and this month launched a listing compliance bulletin as part of moves to increase transparency on disciplinary actions.
“At the moment, the initiatives are not directly geared towards attracting new public listings. The new changes at SGX are certainly welcoming, and should provide a fresh start for Singapore’s stock market, but it remains to be seen how they can attract more IPOs,” said Mr Aw.
Read the original TODAY report here.
-TODAY/ek
-wong chee tat :)
TODAY reports: As the Singapore Exchange languishes with only one IPO listed on the mainboard this year, Hong Kong has been on a tear as it reclaims its position as the world’s top IPO market.
By Angela Teng, TODAY
Posted 29 Dec 2015 09:06
SINGAPORE: The number of initial public offerings (IPO) on the Singapore Exchange (SGX) plunged 57 per cent this year from last year, with analysts attributing the lacklustre performance to a weak market outlook and competition from a much stronger Hong Kong.
Only 13 IPOs were listed on the SGX this year — just one on the mainboard and the other 12 on Catalist, raising a total of about S$630 million. This compared to the 30 IPOs last year, of which 12 were on the mainboard and 18 on the junior board, raising about S$3.5 billion altogether.
BHG Retail Real Estate Investment Trust (REIT) raised S$394.2 million when it listed on the mainboard this month, making it the biggest IPO in Singapore for the year. The units closed unchanged at S$0.80 on its debut day after the underwriter emerged to support the market. At the close on Monday (Dec 28), BHG Retail REIT units remained at S$0.80. Most of the Catalist-listed IPOs, which had offer prices ranging from S$0.20 to S$0.46, gave investors little cheer this year.
Mr Ernest Lim, a remisier at CIMB Securities, said: “Performance of the new listings had more than half registering negative returns, with five of them registering almost 40 per cent drops since their debut. While two of them registered flat returns and two of them, namely Jumbo and Singapore O&G, soared 48 per cent and 198 per cent, respectively … the overall performance is not exactly fantastic.”
“Most clients traded less this year as they are cautious on the overall market environment, slowing China economy, weak Singapore economy and generally lacklustre corporate results,” he added.
As the SGX languishes, Hong Kong has been on a tear as it reclaims its position as the world’s top IPO market. In the first 11 months of the year, 71 companies listed in the city, raising a total of US$31.2 billion (S$43.9 billion), accounting for almost 16 per cent market share of IPO funds worldwide, the South China Morning Post reported.
IG market strategist Bernard Aw said: “Firstly, the red-hot Hong Kong IPO market may have drawn companies away from listing in Singapore … Hong Kong benefited from its proximity to mainland China, compared to Singapore. We can see this advantage quite clearly from the growing number of mainland firms listing in Hong Kong.”
“Secondly, the higher financial bar for a mainboard listing in Singapore (minimum market value of S$150 million or pre-tax profit of at least S$30 million) may have continued to disqualify medium-sized companies, which earned about S$20 million.”
The poor IPO market came amid a turbulent year for the SGX. In June, the bourse had to pony up an estimated S$20 million to address gaps in its service recovery capabilities after it was reprimanded by the Monetary Authority of Singapore over two trading outages last year, one of which brought trading to a halt for hours and hurt Singapore’s reputation as a financial centre.
In July, veteran banker Loh Boon Chye took over from Mr Magnus Bocker as chief executive to spearhead a revival in the fortunes of SGX. In September, local shares plunged in line with other Asian markets following a slew of weak Chinese economic data, with the Straits Times Index falling past the key 2,800 mark. On Monday, the benchmark ended at 2,875.32 in thin year-end trade.
The SGX toughened up its rules on corporate governance in October and this month launched a listing compliance bulletin as part of moves to increase transparency on disciplinary actions.
“At the moment, the initiatives are not directly geared towards attracting new public listings. The new changes at SGX are certainly welcoming, and should provide a fresh start for Singapore’s stock market, but it remains to be seen how they can attract more IPOs,” said Mr Aw.
Read the original TODAY report here.
-TODAY/ek
-wong chee tat :)
Singapore Savings Bond sees higher demand in fourth issue
Singapore Savings Bond sees higher demand in fourth issue
For 2016, Monetary Authority of Singapore will offer up to S$4 billion worth of Savings Bonds, with a new issue every month.
By Linette Lim
Posted 29 Dec 2015 17:16 Updated 29 Dec 2015 19:13
SINGAPORE: A total of S$43.96 million worth of applications were accepted for the fourth tranche of the Singapore Savings Bond, up from S$40.99 million in the previous tranche, said the Monetary Authority of Singapore (MAS) on Tuesday (Dec 29).
The bonds, which will be issued on Jan 4, will pay a coupon of 1.21 per cent in the first year, stepping up every year so that those who hold the bond for the maximum 10-year tenure can earn an average interest of 2.58 per cent per annum.
The Monetary Authority of Singapore (MAS) had set a maximum allotment of S$300 million for the bond to be issued in January.
The Singapore Savings Bonds programme was announced in March by Senior Minister of State Josephine Teo, with the aim of "providing individual investors with a long-term savings option that offers safe returns".
For 2016, MAS will offer up to S$4 billion worth of Savings Bonds, with a new issue every month. Only individuals can apply for the bonds, which are fully backed by the Government. People can invest the minimum sum of S$500 and in subsequent multiples of S$500, up to a maximum of S$50,000 in any single issue, and up to $100,000 in total.
The funds can be redeemed early on a monthly basis without penalty.
- CNA/xk
- wong chee tat :)
For 2016, Monetary Authority of Singapore will offer up to S$4 billion worth of Savings Bonds, with a new issue every month.
By Linette Lim
Posted 29 Dec 2015 17:16 Updated 29 Dec 2015 19:13
SINGAPORE: A total of S$43.96 million worth of applications were accepted for the fourth tranche of the Singapore Savings Bond, up from S$40.99 million in the previous tranche, said the Monetary Authority of Singapore (MAS) on Tuesday (Dec 29).
The bonds, which will be issued on Jan 4, will pay a coupon of 1.21 per cent in the first year, stepping up every year so that those who hold the bond for the maximum 10-year tenure can earn an average interest of 2.58 per cent per annum.
The Monetary Authority of Singapore (MAS) had set a maximum allotment of S$300 million for the bond to be issued in January.
The Singapore Savings Bonds programme was announced in March by Senior Minister of State Josephine Teo, with the aim of "providing individual investors with a long-term savings option that offers safe returns".
For 2016, MAS will offer up to S$4 billion worth of Savings Bonds, with a new issue every month. Only individuals can apply for the bonds, which are fully backed by the Government. People can invest the minimum sum of S$500 and in subsequent multiples of S$500, up to a maximum of S$50,000 in any single issue, and up to $100,000 in total.
The funds can be redeemed early on a monthly basis without penalty.
- CNA/xk
- wong chee tat :)
Loans growth expected to decrease further next year: Banking analysts
Loans growth expected to decrease further next year: Banking analysts
Banks are also expected to further step up efforts next year to stay ahead in the digital revolution, with cybercrime coming in many different guises.
By Nicole Tan
Posted 29 Dec 2015 19:55
SINGAPORE: With a cloudy economic outlook for next year, Singapore banks are likely to see a squeeze on their earnings. According to banking analysts, loans growth is expected to decrease even further as a result, and credit risk may go up.
Meanwhile, banks are expected to further step up efforts next year to stay ahead in the digital revolution, with cybercrime coming in different guises, from personal data theft to pilfering funds.
Banks in Singapore have also cited criminality as the top concern they currently face, in a recent industry survey by PricewaterhouseCoopers (PwC). Amid a fast-evolving digital landscape, observers said the biggest challenges facing banks in Singapore are technology-related.
PwC Singapore Assurance & Financial Services partner, Karen Loon, said: "The top risk was around criminality which relates to risk of cyber (technology), also money laundering and tax. So that's interesting because while there's been a lot of concern globally, the banks are doing quite a lot to try to improve the environment around cyber (technology) together with regulators.
“The second area is around technology risk. Technology risk is really around the concern around the core banking systems not being able to cope."
While banks upgrade internal infrastructure to cope with changes in technology, analysts said the external environment also presents increasingly significant challenges to growing the topline.
LOAN GROWTH EXPECTED TO SLOW
For the whole of 2015, analysts expect growth in the overall loan books for Singapore banks to come in at about 5 per cent. However, they warned that this could slow down even further in 2016.
Standard & Poor's Financial Services Ratings Director, Ivan Tan, said: "Interest income of Singapore banks is the bulk of profitability or revenue source, which means the net profit will also face some headwinds.
“Between 2013 and 2015, while domestic growth has slowed down, overseas growth was able to compensate for slowness in domestic growth. But now, with China-led regional slowdown, even the overseas loan expansion has come down as well. So on the whole, we'll be seeing slower loans growth of between 3 and 5 per cent for 2016."
Slowdown in the region is also expected to put pressure on asset quality. According to the Monetary Authority of Singapore's Financial Stability report in November, non-performing loans made up about 1.5 per cent of Singapore banks' overall loan books in the third quarter of 2015, up from 1.1 per cent a year ago.
The fallout in commodities prices and slowdown in regional economies were cited as the main macroeconomic concerns.
UBS Wealth Management Chief Investment Officer for Southern APAC, Kelvin Tay, said: "Banks exposed to commodity sector, in particular oil and gas, and banks exposed to ASEAN itself, will probably be more vulnerable to banks not exposed to these areas.
“We think ASEAN is probably going through a structural and cyclical slowdown that will last for at least the next three years."
Another credit risk, analysts said, is the anticipated rise in interest rates as the US Federal Reserve normalises monetary policy. Still, higher interest rates are seen as a double-edged sword, with higher interest margins helping to support interest income.
"Net-net, the increase in interest margins on the loan was still more than able to offset the incremental credit cost they have, so banks are better off in that sense," said Mr Tan. "But overall if you take into account slower loans growth, and higher credit cost they have to set aside, the profit upside is not that much."
Despite a challenging external environment, observers said Singapore lenders remain resilient, with strong capital and liquidity buffers to withstand shocks. Still, analysts have said 2016 is likely to be a cautious year, as the banks adopt a more defensive stance and focus on maintaining loan quality and keeping costs low.
- CNA/xk
- wong chee tat :)
Banks are also expected to further step up efforts next year to stay ahead in the digital revolution, with cybercrime coming in many different guises.
By Nicole Tan
Posted 29 Dec 2015 19:55
SINGAPORE: With a cloudy economic outlook for next year, Singapore banks are likely to see a squeeze on their earnings. According to banking analysts, loans growth is expected to decrease even further as a result, and credit risk may go up.
Meanwhile, banks are expected to further step up efforts next year to stay ahead in the digital revolution, with cybercrime coming in different guises, from personal data theft to pilfering funds.
Banks in Singapore have also cited criminality as the top concern they currently face, in a recent industry survey by PricewaterhouseCoopers (PwC). Amid a fast-evolving digital landscape, observers said the biggest challenges facing banks in Singapore are technology-related.
PwC Singapore Assurance & Financial Services partner, Karen Loon, said: "The top risk was around criminality which relates to risk of cyber (technology), also money laundering and tax. So that's interesting because while there's been a lot of concern globally, the banks are doing quite a lot to try to improve the environment around cyber (technology) together with regulators.
“The second area is around technology risk. Technology risk is really around the concern around the core banking systems not being able to cope."
While banks upgrade internal infrastructure to cope with changes in technology, analysts said the external environment also presents increasingly significant challenges to growing the topline.
LOAN GROWTH EXPECTED TO SLOW
For the whole of 2015, analysts expect growth in the overall loan books for Singapore banks to come in at about 5 per cent. However, they warned that this could slow down even further in 2016.
Standard & Poor's Financial Services Ratings Director, Ivan Tan, said: "Interest income of Singapore banks is the bulk of profitability or revenue source, which means the net profit will also face some headwinds.
“Between 2013 and 2015, while domestic growth has slowed down, overseas growth was able to compensate for slowness in domestic growth. But now, with China-led regional slowdown, even the overseas loan expansion has come down as well. So on the whole, we'll be seeing slower loans growth of between 3 and 5 per cent for 2016."
Slowdown in the region is also expected to put pressure on asset quality. According to the Monetary Authority of Singapore's Financial Stability report in November, non-performing loans made up about 1.5 per cent of Singapore banks' overall loan books in the third quarter of 2015, up from 1.1 per cent a year ago.
The fallout in commodities prices and slowdown in regional economies were cited as the main macroeconomic concerns.
UBS Wealth Management Chief Investment Officer for Southern APAC, Kelvin Tay, said: "Banks exposed to commodity sector, in particular oil and gas, and banks exposed to ASEAN itself, will probably be more vulnerable to banks not exposed to these areas.
“We think ASEAN is probably going through a structural and cyclical slowdown that will last for at least the next three years."
Another credit risk, analysts said, is the anticipated rise in interest rates as the US Federal Reserve normalises monetary policy. Still, higher interest rates are seen as a double-edged sword, with higher interest margins helping to support interest income.
"Net-net, the increase in interest margins on the loan was still more than able to offset the incremental credit cost they have, so banks are better off in that sense," said Mr Tan. "But overall if you take into account slower loans growth, and higher credit cost they have to set aside, the profit upside is not that much."
Despite a challenging external environment, observers said Singapore lenders remain resilient, with strong capital and liquidity buffers to withstand shocks. Still, analysts have said 2016 is likely to be a cautious year, as the banks adopt a more defensive stance and focus on maintaining loan quality and keeping costs low.
- CNA/xk
- wong chee tat :)
Homage to the 36 trillion, 119 thousand, 500 Amitabha Buddhas
Homage to the 36 trillion, 119 thousand, 500 Amitabha Buddhas
Homage to the 36 trillion, 119 thousand, 500 Amitabha Buddhas
Homage to the 36 trillion, 119 thousand, 500 Amitabha Buddhas
- wong chee tat :)
Homage to the 36 trillion, 119 thousand, 500 Amitabha Buddhas
Homage to the 36 trillion, 119 thousand, 500 Amitabha Buddhas
- wong chee tat :)
Homage to the 36 trillion, 119 thousand, 500 Amitabha Buddhas
Homage to the 36 trillion, 119 thousand, 500 Amitabha Buddhas
Homage to the 36 trillion, 119 thousand, 500 Amitabha Buddhas
Homage to the 36 trillion, 119 thousand, 500 Amitabha Buddhas
- wong chee tat :)
Homage to the 36 trillion, 119 thousand, 500 Amitabha Buddhas
Homage to the 36 trillion, 119 thousand, 500 Amitabha Buddhas
- wong chee tat :)
Homage to the 36 trillion, 119 thousand, 500 Amitabha Buddhas
Homage to the 36 trillion, 119 thousand, 500 Amitabha Buddhas
Homage to the 36 trillion, 119 thousand, 500 Amitabha Buddhas
Homage to the 36 trillion, 119 thousand, 500 Amitabha Buddhas
- wong chee tat :)
Homage to the 36 trillion, 119 thousand, 500 Amitabha Buddhas
Homage to the 36 trillion, 119 thousand, 500 Amitabha Buddhas
- wong chee tat :)
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