Oil Price Gyration – What does this mean for Singapore Banks?
Oil prices expected to remain volatile on oversupply and concerns of COVID-19 impact on the global economy. Banks in Singapore and overseas have significant exposure to the oil & gas sector. ESG, MPA and MAS issued joint release saying that banking sector remains sound and is closely monitoring liquidity and credit conditions. Singapore banks’ NPL ratios have stabilised at 1.5% at end 2019 results, vs. average of 1.7% in end 2017