Singapore

SINGAPORE banks may see some margin compression as the industry transitions to risk-free reference rates, but there is no race to the bottom for loan pricing in the next few years, said analysts.

Singapore is moving towards the Singapore Overnight Rate Average (Sora) as the main interest rate benchmark for the Singapore dollar (SGD) financial markets in the future, with the Swap Offer Rate (SOR) and the Singapore Interbank Offered Rate (Sibor) soon to be discontinued.