(May 27 11:35) Sbr.com.sg
Uploaded By:
Alyssa Divina
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Staff Reporter
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High credit costs can be covered by profits.
Singaporean banks still reap the benefits of operating in an economically-stable environment, as shown by their robust funding profiles and the sound financial system, according to an S&P Global Ratings report.
Sector fundamentals will remain healthy despite credit costs possibly doubling or tripling this year, with the increase coming from a low base from a long-run average of 20-25bp of loans, which can be covered by profits and will leave capital intact, analysts Ivan Tan and Rujun Duan said.
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