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Asian banks need to watch exposure to riskier funding
But Singapore banks have cut their wholesale funding and have lower costs than Asia-10 average
Add BT as a preferred sourcePublished Tue, Nov 29, 2016 · 09:50 PM
Singapore
THE era of loose monetary policy has been a double-edged sword for Asian banks because of the drive towards cheaper, but less stable, wholesale funding, a research report by the Monetary Authority of Singapore (MAS) on Tuesday said.
The report said Asian banks mostly beyond Asean - that is, those in China, Hong Kong, Taiwan and India - sought out more wholesale funding in 2015 compared with 2008. This means they are using funding sources inherently weaker than deposits.
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