Singapore banks face first test on credit cost projections amid virus outbreak: Citi

THE extent of the latest support announced by Singapore's financial industry and the Monetary Authority of Singapore (MAS) for distressed property owners and small and medium-sized enterprises (SMEs) shows the depth and breadth of the current economic downturn, a Citi report said late on Tuesday.

Against this backdrop, Singapore banks are due to be tested for the first time on how they would project credit costs against a broad-based contraction caused by the Covid-19 outbreak, the bank-brokerage said.

MAS on Tuesday announced measures that spelt out how certain relief packages should be structured to allow distressed property owners and SMEs a pause on debt repayments or payments on insurance policies if hit with a sharp loss of income.