Singapore: Selected Issues

July 28, 2017

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Format: Chicago

Singapore: Selected Issues, (USA: International Monetary Fund, 2017) accessed September 18, 2024

Summary

This paper outlines that the banking sector remains healthy, backed by high capital, liquidity, provisioning and profitability ratios. Sector-wide nonperforming loans (NPLs) have increased slightly (to 2 percent in 2017:Q1), due largely to stresses in the Oil and Gas (O&G) services sector. Banks have responded by increasing provisions (using forward-looking measures of impairment) and restructuring their loans. Overall, the banking sector is well-positioned to withstand shocks. Capital and liquidity positions are sufficiently strong and well above regulatory requirements. Capital and liquidity positions of the local banking groups remain strong. Liquidity coverage ratios (LCR) of all three major banks remained high and rose in 2016:Q4, remaining well above the regulatory limits. The turnaround in bank’s profitability (especially the strong performance in 2017:Q1) is attributed to two factors: an acceleration in credit growth and increases in fee income from wealth management services. Local banks have been a key factor behind the wealth management sector’s growth and its main beneficiary.

Subject: Aging, Balance of payments, Capital flows, Financial sector policy and analysis, Housing, Income, Macroprudential policy instruments, National accounts, Population and demographics, Private savings

Keywords: Aging, Asia and Pacific, Australia and New Zealand, Bank, Capital flows, CR, Global, Housing affordability, Income, ISCR, Macroprudential policy instruments, North America, Private saving, Private savings, Private sector, Property market stability, Saving rate, Singapore, Wealth management

Publication Details

Pages:

67
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2017/241
Stock No:

1SGPEA2017002
ISBN:

9781484312858
ISSN:

1934-7685

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