Monetary Authority of Singapore: Asia companies can endure shocks

Menon: ‘Our tests also show that banks in Singapore can withstand a stress scenario of steep regional currency depreciation and sharp increases in interest rates.’ – Reuters

SINGAPORE: Tests done by Singapore’s central bank show Asian companies can withstand shocks far greater than the 1997 and 2008 financial crises, according to Ravi Menon, managing director of the Monetary Authority of Singapore (MAS).

Rising interest rates in the United States and other developed markets would add to the debt costs of Asian businesses and consumers, putting stress on over-extended borrowers if regional currencies weaken sharply as well, Menon said in a column published in Business Times newspaper.