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Banks seen relying more on wholesale funding

Loan-deposit ratio at UOB hits 100% as retail funding shrinks from a quarter earlier

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The comment comes as the loan-deposit (LDR) ratio in Singapore dollars of United Overseas Bank (UOB) hit 100 per cent in the second quarter - simply put, a dollar from deposits funds a dollar of loans - PHOTO: ST

GIVEN shrinking deposits from a quarter ago, the three homegrown lenders are expected to rely more on the wholesale market to fund their operations, a Credit Suisse report said. And this makes the banks more vulnerable when liquidity dries up, as seen during the global financial crisis.

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