SINGAPORE: Singapore’s financial regulator has warned of risks to banks’ profits and foreign-currency funding stemming from a slowing global economy and increasingly uncertain outlook.
While the nation’s banking system remains healthy and lenders continue to have “ample capital and liquidity buffers, ” low interest rates and slowing credit growth could squeeze profit margins, the Monetary Authority of Singapore said in its annual Financial Stability Review. Banks must “be vigilant” to pressures on their foreign-currency liquidity positions, it added.