Scarred by 2017, Singapore banks to face test on O&G exposure again

WITH oil trading giant Hin Leong making headlines amid the current collapse of oil prices, the Singapore banks are set to take charges against their broader exposure to the oil-linked sectors but in a more measured way given more prudence today, analysts said.

The Business Times reported that the Singapore banks have a total exposure to Hin Leong at about US$600 million. In 2017, the local banking trio was also hit by their exposure to the oil-and-gas (O&G) sector with the protracted slump in oil prices.

Analysts said that Singapore banks are likely to see an increase in non-performing loans (NPL) and credit charges given the volatility in the oil-and-gas (O&G) sector, with oil trading giant Hin Leong the most high-profile casualty.