Singapore central bank urges prudence in bank finances amid pandemic recovery
Reuters
Published Dec 06, 2021 12:19AM ET
SINGAPORE (Reuters) - Singapore's central bank urged banks on Monday to keep their finances strong and resilient to "shocks", in case of an abrupt rise in unemployment and business insolvencies due to the COVID-19 pandemic.
Although the economic outlook had improved recently, there remained a risk of a further deterioration in the ability of individuals and companies to repay debt, if the pandemic continued to cause prolonged disruptions to economic activity, the Monetary Authority of Singapore (MAS) said in its annual financial stability review.
"Unemployment and business insolvencies could in turn rise abruptly......banks should therefore continue to remain prudent in managing their balance sheets, to ensure that their capital positions remain robust and resilient to shocks as they continue to support the economy through the latter stages of the recovery from the pandemic," MAS said.
With the recent emergence of the new COVID-19 variant Omicron, Singapore has held off on further reopening plans https://www.reuters.com/world/asia-pacific/singapore-hold-off-further-reopening-evaluate-omicron-variant-2021-11-30. Singapore's government coronavirus taskforce said it will be evaluating the Omicron variant before making on any new moves.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.