Economic pain will make slower but surer imprint in banks' results

Singapore

DBS'S latest guidance following its Q1 results is likely to bring the local banking sector to closer certainty of credit costs hitting previous crises levels, though relief measures from the government and guidance from the Monetary Authority of Singapore (MAS) on what defines defaults does change how soon this would be reflected.

As it is, with economists projecting a gross domestic product (GDP) contraction this year of as much as 10 per cent from a year ago, banks that function by intermediating credit to fund economic activity will see some of such imprints in their results.