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