Amid oil rout, MAS seeks prudent provisioning by banks
It does not prescribe provisioning but through its questions, banks know they need to be conservative
Singapore
AGAINST the backdrop of volatile oil prices and banks' exposure to oil-related companies, the Monetary Authority of Singapore (MAS) is querying banks on their provisioning decisions, and has made clear that banks should have prudent standards.
Provisions are a form of reserves taken against earnings and are typically measured as a percentage of all loans. It is a cushion against souring loans.
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