Tough year for S'pore and regional banks, warns S&P

SINGAPORE banks could be in for a rough ride this year due to sluggish economic growth and skittish financial markets.

Lower economic growth prospects and tighter credit conditions could create a tougher operating environment for the banking sector here and in the region, said a new report by Standard & Poor's (S&P).

S&P expects Singapore's Gross Domestic Product (GDP) growth to fall to 3.4 per cent this year, from 3.7 per cent last year.