Singapore banks see improved asset quality in 2021 with recovery ahead

Singapore

SINGAPORE banks are easing their worst outlooks on bad debt, as loan relief is scaled back amid growing optimism on economic recovery this year.

With increased clarity on asset quality, banks are guiding for lower credit costs in 2021 as the bulk of provisions have already been taken, setting the stage for a pickup after a year that saw businesses and economies hard-hit by the pandemic.