Gradual rate hikes will benefit Singapore banks, says S&P

Singapore

SINGAPORE banks will, on the whole, benefit from gradual rate hikes, Standard and Poor's (S&P) said in a report on Thursday.

And this comes after evaluating risks from higher non-performing loans (NPLs) and a potential build-up of complacency from prolonged stability in the consumer loans market, with S&P noting that banks should be able to absorb any stresses. In particular, the government has stepped in to stem excessive lending in the low interest-rate environment, as well.