Singapore Banks
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Singapore banks, such as DBS Bank, OCBC Bank and United Overseas Bank, are the safest banks in Asia, according to The Global Finance Magazine’s 2009 report. Several major international banks also have their offices in Singapore. Singapore has an advantage of time zone that bridges the gap between the market close in the US and the market reopening in Europe. Given the political stability and good infrastructure, Singapore is well-placed to play a serious role as an intermediary for fund flows across Asia.[br]
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Singapore Banks – Commercial
Commercial Singapore banks offer universal banking services, such as provision of check services, taking deposits and lending. These Singapore banks also provide other services authorized by the Monetary Authority of Singapore (MAS), which include insurance brokering, financial advisory services and capital market services. Since July 2001, commercial banks have not been allowed to undertake non-financial activities in Singapore.
Singapore Banks – Local Banks
Since 2001, the Singapore government has been giving increased liberties for foreign banks to operate in the country, to aid the consolidation of the local banking industry. The consolidation is aimed at creating larger banking conglomerates that can regionalize and compete with foreign banks in a better way. The number of local banks in Singapore is already reduced to five.[br]
Singapore Banks – Rebound
The Monetary Authority of Singapore reports that there was a rise in business loans in August 2009, driven by general commerce, storage, transport and communications. This, according to MAS, is a sign of recovery of the Singapore economy as a whole. Although the Singapore government is taking more risk-sharing initiatives to help Singapore banks and businesses, small and medium businesses are still cautious about getting loans Large corporations, however, are taking more loans.
According to Fitch Ratings, the banking industry in Singapore is expected to witness a modest rebound during the second half of 2009 and 2010 due to improving external conditions. Despite the global economic crisis, Singapore banks are doing well due to their loss-absorbing capacities and high capital cushion. Singapore, being the financial hub of Asia, has great scope for an enhanced growth in its banking industry.
