Latest Forum Topics /
OCBC Bank
Last:12.36
+0.02
|
 Post Reply
|
|
dow34899 down905
|
|||||
|
chartistkao1
Supreme |
24-Mar-2023 11:34
|
||||
|
x 0
x 0 Alert Admin |
assuming you also get $0.40 cts in the second half of 2023 from ocbc at $12.36 your yield will be 6.472% https://www.dividends.sg/view/o39
|
||||
| Useful To Me Not Useful To Me | |||||
|
chartistkao1
Supreme |
24-Mar-2023 11:09
|
||||
|
x 0
x 0 Alert Admin |
In Schwab&rsquo s case, the firm had more than $11 billion in unrealized losses on its hold-to-maturity bond portfolio at the end of 2022, exceeding its tangible common equity of just over $6 billion. Most of those holdings were government-backed mortgage bonds, which are generally considered safe. The company also owns Treasurys, asset-backed securities, corporate debt and certificates of deposit, according to a regulatory filing. The question now is what price Schwab could have to pay for that decision. Schwab executives expected the Fed would raise rates 0.75 percentage point in 2022. Instead the Fed raised them nearly six times as much, by 4.25 percentage points, in a continuing battle against the highest U.S. inflation in decades. Mr. Bettinger said Schwab executives knew what would happen to the value of its securities portfolio once the Fed began to raise rates, and took steps to prepare for it. Schwab said it has about $100 billion of cash flow from cash on hand, interest payments on bonds and net new assets it expects to bring in during the next year. The company said it can raise an additional $8 billion a month in CD sales. It can also tap more than $300 billion in liquidity from the Federal Home Loan Bank and other short-term facilities, including the government&rsquo s Bank Term Funding Program, which was unveiled earlier this month after SVB collapsed. Schwab occupies an unusual corner on Wall Street. Long known primarily as a low-cost broker to individual investors, the company has expanded its financial-services offerings and added millions of clients. At the end of last year, it was the 10th-largest bank in the U.S. SHARE YOUR THOUGHTSWhat is your outlook on Charles Schwab after the collapse of SVB? Join the conversation below.Schwab has to put that deposit money somewhere, and its lending arm is relatively small. The firm puts more than 80% of its deposits to work by investing in various liquid debt securities. That means Schwab&rsquo s bond portfolio is huge compared with its overall balance sheet, a fact that was highlighted by bank investors this month as SVB failed. And Schwab, like many other banks, has been losing deposits as rates have risen.
|
||||
| Useful To Me Not Useful To Me | |||||
|
|
|||||
|
chartistkao1
Supreme |
24-Mar-2023 11:07
|
||||
|
x 0
x 0 Alert Admin |
Charles Schwab Corp., SCHW -5.99%decrease red down pointing triangle one of a host of financial firms that have taken a drubbing since the collapse of several regional banks this month, is pushing back against fears that it could face some of the same problems as paper losses on its bondholdings mount. In an interview with The Wall Street Journal, Schwab&rsquo s chief executive said the brokerage giant could continue to operate even if it lost most of its deposits over the next year. &ldquo There would be a sufficient amount of liquidity right there to cover if 100% of our bank&rsquo s deposits ran off,&rdquo said Walt Bettinger, Schwab&rsquo s co-chairman and CEO, referring to the company&rsquo s banking unit. &ldquo Without having to sell a single security.&rdquo
Instead, Mr. Bettinger said, the company could engage in a number of strategies to plug any funding shortfall, including collecting interest paid on bonds it owns, borrowing from the Federal Home Loan Bank and issuing certificates of deposit. The downfall of SVB Financial Group SIVB -60.41%decrease red down pointing triangle, the parent of Silicon Valley Bank, has sent investors rushing to look for other banks that have also lost deposits and are sitting on paper losses on their bondholdings. Schwab&rsquo s shares are down 31% since March 8, the day SVB spooked bank investors by announcing an emergency capital raise. NEWSLETTER SIGN-UP
Markets A.M. A pre-markets primer packed with news, trends and ideas. Plus, up-to-the-minute market data. Preview
Schwab isn&rsquo t SVB. For one thing, SVB was focused on the cash-burning world of venture capital, which hit a down cycle last year. Many of Schwab&rsquo s deposit customers are individuals who come to Schwab largely for its investing platforms. SVB also encouraged customers to keep all their money there. About 90% of its deposits were above the cap for government insurance, making customers prone to flight at the first sign of trouble. At Schwab, on the other hand, less than 20% of deposits are above the cap. But SVB, Schwab and numerous other banks invested a big slug of that cash in long-term bonds. Then the Federal Reserve raised interest rates faster and more sharply than many of those firms, including Schwab, expected. Those increases slashed the value of the banks&rsquo bondholdings, such that selling them now would result in significant losses.
|
||||
| Useful To Me Not Useful To Me | |||||
|
chartistkao1
Supreme |
24-Mar-2023 11:04
|
||||
|
x 0
x 0 Alert Admin |
It started in the early 2000s, when the government of then-President Robert Mugabe printed ever more money in an attempt to compensate for a collapse in agricultural production that followed a controversial land-redistribution effort. After monthly inflation peaked, by one measure, at 79.6 billion percent, the government in 2009 abolished the Zimbabwe dollar and began using U.S. dollars instead. NEWSLETTER SIGN-UP
What&rsquo s News Catch up on the headlines, understand the news and make better decisions, free in your inbox every day. Preview
Today, $1 costs more than 900 Zimbabwean dollars and inflation hit 230% in January. Most businesses once again demand payments in U.S. dollars, although the Zimbabwe dollar remains the country&rsquo s official currency. That&rsquo s where the issue of change comes in. Zimbabwean commercial banks and the central bank import U.S. dollar bills for local use, but their heavy weight and low value makes flying in coins from overseas uneconomical. One-dollar notes&mdash the most widely used bills in a country where even before the pandemic nearly 40% of people lived on less than $1.80 a day&mdash are also often in short supply. The paper IOUs have proven an unsatisfactory fix. For starters, they aren&rsquo t fungible. Ms. Manyowa, a 23-year-old college student, spent 15 minutes waiting by the till of a Harare Chicken Inn until another customer paid with a $1 bill she could use for the bus fare home. &ldquo It&rsquo s frustrating,&rdquo Ms. Manyowa said as she waited.  In contrast to bank notes, which are usually made from cotton or plastic, paper chits also can&rsquo t withstand an extended spin in the washing machine. Adelaide Moyo, a journalist for a Zimbabwean newspaper, says she has more than once found the faded remnants of vouchers from Chicken Inn or the local franchise of Netherlands-based supermarket chain Spar stuck to her clothes when she pulls them out of the wash. To avoid such losses, Ms. Moyo says she has accepted slices of cheese, extra sauce and, once, a hard-boiled egg instead of more paper chits. Those barter trades usually don&rsquo t offer good value for money, like the slice of cheese that cost her $0.50, but, she says, they&rsquo re better than carrying around, or losing, vouchers from multiple places. &ldquo You&rsquo d rather just get the food,&rdquo she said. Zimbabwe&rsquo s malfunctioning currency has forced businesses to become creative, says Warren Meares, the chief executive of Simbisa Brands, which owns Chicken Inn and several other fast-food chains. The rapid devaluation of the Zimbabwean dollar has made it too costly to constantly reprint menus, which show prices in both U.S. dollars and the local currency, so the company installed TV screens to display meals and their prices. &ldquo It was costing us almost $2,000 to $3,000 every time you had to change prices,&rdquo said Mr. Meares. Simbisa&rsquo s vouchers have serial numbers and are replaced every six months to avoid their getting too worn out. Although they lack the safety features of bank notes, Mr. Meares says he&rsquo s not aware of any attempts to forge the chits, which only come in $0.25 and $0.50. &ldquo We&rsquo re not going to accept more than $3 or $4 worth of vouchers from you,&rdquo he said. &ldquo It&rsquo s not worth it.&rdquo
|
||||
| Useful To Me Not Useful To Me | |||||
|
chartistkao1
Supreme |
24-Mar-2023 11:00
|
||||
|
x 0
x 0 Alert Admin |
why can' t some country print money like us and rob oil and sanction others vie brute force but have to suffer HARARE, Zimbabwe&mdash On a recent afternoon, Rutendo Manyowa handed over a U.S. $5 bill to pay for her $3.50 order of chicken, fries and a soft drink at a popular fast-food joint in the Zimbabwean capital. But instead of a $1 bill and two quarters in change, the cashier handed Ms. Manyowa three slips of paper, bearing the restaurant&rsquo s name and the amount of money she could use to buy her next meal. Zimbabwe, the country that brought the world the one-hundred-trillion-dollar bill, has reached a new stage of monetary dysfunction. Because of a lack of small change, businesses have started printing their own &ldquo money&rdquo &mdash scraps of paper, sometimes handwritten, that customers can use to pay for future purchases. Others are handing out change in-kind, making customers whole with juice boxes, pens or slices of cheese.
|
||||
| Useful To Me Not Useful To Me | |||||
|
|
|||||
|
chartistkao1
Supreme |
24-Mar-2023 08:44
|
||||
|
x 0
x 0 Alert Admin |
us' s bidden-war and conflit, china peace and trade egardless of the US reservations, dismissing it outright could let China argue to other nations that are weary of the war &mdash and of the economic damage it&rsquo s wreaking &mdash that Washington isn&rsquo t interested in peace.(March 23): Xi Jinping&rsquo s meetings in Moscow with Vladimir Putin put the Biden administration in an uncomfortable position: on the sidelines as two adversaries discuss a Ukraine peace proposal that the US has deemed unacceptable. US officials have publicly expressed deep skepticism about the Chinese idea, saying its call for a cease-fire would reward Moscow&rsquo s invasion by cementing its territorial gains. Privately, though, the meetings and the proposal have provoked a sense of unease within the administration, leading in turn to questions about the broader US approach to the two countries. According to one administration official, who asked not to be identified discussing internal deliberations, the US is worried about being backed into a corner over the Chinese proposal. Regardless of the US reservations, dismissing it outright could let China argue to other nations that are weary of the war &mdash and of the economic damage it&rsquo s wreaking &mdash that Washington isn&rsquo t interested in peace. If the US spurns the agreement, &ldquo China will likely ramp up messaging that the US is opposed to a cease-fire, that the US is opposed to the end of the war,&rdquo said Bonny Lin, a fellow at the Center for Strategic and International Studies who once served at the Pentagon. &ldquo There will be lots of ways in which China will try to spin whatever comes from the China-Russia meeting in a way that seeks to portray the US in negative light.&rdquo The debate over China&rsquo s version of a peace plan highlights just one of the many uncomfortable realities that were brought home by Xi&rsquo s three-day visit this week to Moscow, which saw the Chinese leader greeted warmly by Putin. The two countries pledged to deepen their partnership even further. The Biden administration has tried to keep China on the sidelines since the start of the Ukraine invasion, but the opposite appears to have happened. Even as Xi and Putin grow closer, China is finding a receptive audience for its broader diplomatic push around the globe. At a Senate hearing on Wednesday, Senator Jeff Merkley asked Secretary of State Antony Blinken to respond to what the Oregon Democrat called a &ldquo three-day bro-fest with Putin and Xi celebrating authoritarian power.&rdquo Blinken acknowledged it was a continuation of the two nations&rsquo pledge right before the war of a &ldquo partnership with no limits.&rdquo &ldquo This is no surprise &mdash both countries have very different worldviews than our own,&rdquo Blinken said. &ldquo They may find common cause in opposing the worldview that we and so many other countries around the world seek to defend and advance.&rdquo Blinken didn&rsquo t mention all the countries that have refused to take sides despite US urging. China has shrugged off US sanctions over its companies&rsquo partnership with Russia, bought oil from Iran&rsquo s regime in defiance of western demands and helped orchestrate a diplomatic detente between Saudi Arabia and Iran. Major global economies such as India and Brazil are refusing to choose between China and the West, arguing they don&rsquo t want a new Cold War. And a week ago, Honduras began the process of giving up its diplomatic ties with Taiwan in favour of economic links with China. The move was &ldquo a sign of my determination to fulfill the government plan and expand frontiers freely in harmony with the nations of the world,&rdquo President Xiomara Castro said in a tweet. Worsening tiesIt&rsquo s all taking place as US ties to China, which began to fray with former President Donald Trump&rsquo s trade war, keep getting worse. That was underscored by the furor over the alleged Chinese spy balloon that provoked a national outcry in the US and angry recriminations between Washington and Beijing.That episode eroded an attempt to stabilize the relationship late last year with an in-person summit between President Joe Biden and Xi in Indonesia. It led to a tense meeting between Secretary of State Antony Blinken and top Chinese diplomat Wang Yi in Munich, and Xi later warned of &ldquo comprehensive containment and suppression by Western countries led by the US.&rdquo US officials argue that their sharp words for Beijing are having an impact. They say US public warnings that China might provide lethal assistance to Russia led Xi&rsquo s government to think twice about the idea. The US also continues to supply Ukraine with weapons &mdash it announced US$325 million in new munitions this week &mdash in concert with European nations that are coming up with new supply plans of their own. The Biden administration has tried to make China confront the Ukraine crisis on the US&rsquo s terms, but &ldquo Xi is now getting in on his terms,&rdquo said Christopher K Johnson, president of China Strategies Group, a political risk consultancy. &ldquo And that, I think, is probably causing some consternation within the administration.&rdquo With Washington constantly taking a hawkish hard line on China, some analysts believe that China may have effectively given up on a better relationship with the US anytime soon. The less China sees an opportunity to work with the US, &ldquo the more likely they are to pursue those other avenues and options,&rdquo said Melanie Sisson, a foreign policy fellow at the Brookings Institution. &ldquo And in many ways and places, that will mean trying to fray US relationships with other countries.&rdquo
|
||||
| Useful To Me Not Useful To Me | |||||
|
chartistkao1
Supreme |
24-Mar-2023 08:31
|
||||
|
x 0
x 0 Alert Admin |
US can do all this unfair and unethical way of mishandling eonomic and financial and world matters becuase
http://www.takungpao.com/news/232108/2023/0323/832229.html
https://www.investopedia.com/articles/forex-currencies/092316/how-us-dollar-became-worlds-reserve-currency.asp
|
||||
| Useful To Me Not Useful To Me | |||||
|
chartistkao1
Supreme |
23-Mar-2023 14:33
|
||||
|
x 0
x 0 Alert Admin |
why other big countries keep cutting us bonds if https://abcnews.go.com/Business/us-banking-system-sounds-resilient-fed-chair-jerome/story?id=98049363
|
||||
| Useful To Me Not Useful To Me | |||||
|
|
|||||
|
chartistkao1
Supreme |
23-Mar-2023 14:31
|
||||
|
x 0
x 0 Alert Admin |
take profit and cut loss us bonds and put into usdsgd 1.324
|
||||
| Useful To Me Not Useful To Me | |||||
|
chartistkao1
Supreme |
23-Mar-2023 11:40
|
||||
|
x 0
x 0 Alert Admin |
if US manage to contain its banking crisis in 2023 https://www.businesstimes.com.sg/companies-markets/transport-logistics/wee-ee-cheong-acquires-uob-shares-post-fy22-results
|
||||
| Useful To Me Not Useful To Me | |||||
|
chartistkao1
Supreme |
23-Mar-2023 11:34
|
||||
|
x 0
x 0 Alert Admin |
will US' s fed rate hike gamble pay off to contain the us banking crisis of sv bank,signature banks and the others Less than two weeks after the second-biggest bank failure in US history, Federal Reserve Chair Jerome Powell made clear that inflation remains policymakers&rsquo top concern. The Fed chief advised that more Fed tightening may be in store after Wednesday&rsquo s interest-rate hike, and that the central bank will raise rates higher than expected if needed. In a press briefing, he also said officials don&rsquo t expect to be cutting rates this year &mdash even as the bond market showed traders doubling down on that outcome.
|
||||
| Useful To Me Not Useful To Me | |||||
|
chartistkao1
Supreme |
23-Mar-2023 09:33
|
||||
|
x 0
x 0 Alert Admin |
the 2008' s crisis in Us was postphone to 2023 triigered by a series of aggressive rate hikes from fed and the selldown of us bonds and selldown of us tech and bank shares https://www.japantimes.co.jp/news/2023/03/22/business/us-regional-bank-fears/
|
||||
| Useful To Me Not Useful To Me | |||||
|
|
|||||
|
chartistkao1
Supreme |
23-Mar-2023 09:30
|
||||
|
x 0
x 0 Alert Admin |
can yellen and fed stop a continue bank run from small and middle size banks to big 4 banks A bank run occurs when a large number of customers withdraw their deposits from a bank at the same time, typically due to concerns about the bank' s solvency or stability. Bank runs can be triggered by various factors, such as rumors about the bank' s financial health, economic downturns, or a loss of confidence in the banking system. While bank runs are rare in the modern banking system, they have happened in the past, including in the United States during the Great Depression in the 1930s. The U.S. https://www.reuters.com/business/finance/jpmorgan-other-big-us-banks-flooded-with-new-clients-post-svb-collapse-ft-2023-03-14/
|
||||
| Useful To Me Not Useful To Me | |||||
|
chartistkao1
Supreme |
20-Mar-2023 14:51
|
||||
|
x 0
x 0 Alert Admin |
now US finished the world with silicon valley bank,silvergate and signature banks ,and other banks soon they will start nucluer war in asia to solve their infinite debts problems Stock indexes across Asia fell Monday as recent turmoil weighed on bank shares. Hong Kong&rsquo s Hang Seng Index, which is dominated by banks and technology firms, was down around 2.9% in midafternoon trading. HSBC Holdings and Standard Chartered, two of the largest banks in Hong Kong, both dropped more than 6%. WHAT' S NEWSSee MoreWHAT' S NEWSInvestors in Asia were attempting to work out the implications of the rapid acquisition of Credit Suisse Group by Swiss rival UBS Group this weekend, the latest chapter in a weekslong period of banking sector turmoil that has included the failure of U.S. lenders and a coordinated move by global central banks to increase dollar liquidity.
NEWSLETTER SIGN-UP
Markets A.M. A pre-markets primer packed with news, trends and ideas. Plus, up-to-the-minute market data. Preview
Mr. Ng thinks the selloff may be an overreaction as he said Asian banks are sheltered from the storm in Europe and the U.S., at least for now. Japan&rsquo s Nikkei 225 fell 1.2% by midafternoon. Mitsubishi UFJ Financial Group and Sumitomo Mitsui Financial Group declined more than 1.5% each while Mizuho Financial Group dropped 2.2%. The South Korean Kospi index edged down 0.6% and Australia&rsquo s S& P 200 fell 1.4%. Stocks in mainland China were an exception, trading mostly flat by midafternoon. The CSI 300 benchmark lost 0.2%. The four largest state-owned banks in China all advanced, with the Bank of China gaining around 1%.
|
||||
| Useful To Me Not Useful To Me | |||||
|
chartistkao1
Supreme |
20-Mar-2023 13:46
|
||||
|
x 0
x 0 Alert Admin |
Please use the sharing tools found via the share button at the top or side of articles. Copying articles to share with others is a breach of FT.com T& Cs and Copyright Policy. Email [email protected] to buy additional rights. Subscribers may share up to 10 or 20 articles per month using the gift article service. More information can be found here. https://www.ft.com/content/12cde8bc-ddac-48ef-8563-ff4007fa7e9f The Federal Reserve and five other leading central banks have taken fresh measures to improve global access to dollar liquidity as financial markets reel from the turmoil hitting the banking sector. In a joint statement on Sunday, the central banks said that, from tomorrow, they would switch from weekly to daily auctions of dollars in an effort to &ldquo ease strains in global funding markets&rdquo . The daily swap lines between the Fed and the European Central Bank, the Bank of England, the Swiss National Bank, the Bank of Canada and the Bank of Japan would run at least until the end of April, the officials said. The announcement of daily dollar auctions across time zones &mdash a policy last put in place during the 2020 Covid shock &mdash came hours after the SNB announced that Switzerland&rsquo s two largest banks, UBS and Credit Suisse, would merge after a frantic weekend of negotiations. European officials are concerned that the heavy losses imposed on Credit Suisse&rsquo s shareholders, and bondholders holding its alternative tier one &mdash or AT1 &mdash debt, could increase stress in bank funding markets this week. The Fed&rsquo s swap line network, first set up in 2007, has provided an important funding backstop for global banks during periods of acute market stress. Lenders outside the US can use the swap lines to access dollars in exchange for their domestic currencies by pledging collateral at their respective central bank. The ECB&rsquo s governing council held a call on Sunday evening to approve the switch to a daily swap line with the Fed. &ldquo The network of swap lines among these central banks is a set of available standing facilities and serve as an important liquidity backstop to ease strains in global funding markets, thereby helping to mitigate the effects of such strains on the supply of credit to households and businesses,&rdquo the central banks said. The BoE said it would announce details of each day&rsquo s operation at 8.15am London time. Operations would take place at 8.15am with a closing time for bids of 8.45am and the results announced at 10am or shortly afterwards. The funds would be offered at a rate equivalent to overnight US interest rates plus 25 basis points. The Fed also has a facility in place that allows central banks and international monetary authorities to enter into repurchase agreements with the central bank and trade US Treasuries for dollars. The so-called &ldquo FIMA&rdquo repo facility was first erected as part of the Fed&rsquo s emergency measures to contain the fallout from the Covid crisis and was made permanent in 2021
|
||||
| Useful To Me Not Useful To Me | |||||
|
chartistkao1
Supreme |
17-Mar-2023 14:18
|
||||
|
x 0
x 0 Alert Admin |
https://eprints.lse.ac.uk/88844/1/Postel-Vinay_Chicago%20bank%20failures_Accepted.pdf
|
||||
| Useful To Me Not Useful To Me | |||||
|
chartistkao1
Supreme |
17-Mar-2023 13:56
|
||||
|
x 0
x 0 Alert Admin |
https://abcnews.go.com/Business/wireStory/ny-banks-demise-contagion-problem-business-97895274
|
||||
| Useful To Me Not Useful To Me | |||||
|
chartistkao1
Supreme |
17-Mar-2023 13:37
|
||||
|
x 0
x 0 Alert Admin |
https://www.weforum.org/agenda/2023/03/banking-crisis-svb-financial-jargon-explained/
https://www.bis.org/publ/work70.pdf
|
||||
| Useful To Me Not Useful To Me | |||||
|
chartistkao1
Supreme |
17-Mar-2023 13:31
|
||||
|
x 0
x 0 Alert Admin |
how can usd remail vis sgd so strong under credit squeeze situation in us and the west?
The tentacles of the US Reform Law in 2018 did not reach our shores. Fortunately for Singapore, our local banks are required to conduct stress tests regularly and comply with the Basel Committee for Banking Supervision&rsquo s (BCBS) liquidity and capital ratios. The local banks are also likely to be largely untouched by Credit Suisse Group' s woes as they have stated their exposures are insignificant.
The local banks have just emerged from the pandemic during which they set aside large amounts of general provisions and increased their management overlays. Despite the improving credit environment in 2022, the banks have written back only very modest amounts of the general provisioning or GP. Still, the overlays remain untouched. &ldquo A large part of the general provision management overlay was set aside during Covid. Back then, we communicated that changes to the overlay, including any reversal, will depend on how the situation pans out. Stress tests of our portfolio resulted in an estimated expected credit loss (ECL) figure that was consistent with what we had set aside at that point in time,&rdquo said Chng Sok Hui, group CFO of DBS Group Holdings during its results briefing on Feb 13.
&ldquo Specific provisions (SPs) were at 8 bps of loans for 2022 and we currently do not expect to see any material pick up in credit costs. The reason why we guided for 10&ndash 15 bps of credit costs is precisely because we do not know the extent of the lagged impact of higher interest rates. We also have a sizable general allowance management overlay which remains untouched. We did not reverse it last year or the year before unlike many other banks. Therefore, even if some unexpected SPs materialise, we have the capacity to absorb it from our existing buffers,&rdquo says Piyush Gupta, group CEO at DBS. Management overlays are amounts kept aside for times of uncertainty, over and above the provisions for ECL required by banks&rsquo macroeconomic variable (MEV) models. DBS has announced that its management overlay is $2 billion while United Overseas Bank (UOB) guided its management overlay is around $1.4 billion to $1.5 billion. Oversea-Chinese Banking Corp&rsquo s (OCBC) management declined to reveal its overlay which is believed to be either below or around $1 billion. Credit risks manageable See also: Bracing for more aftershocks &ldquo Singapore banks&rsquo risk profiles are resilient as defaults on unsecured retail, home and SME loans look modest in the event of a slowdown. DBS&rsquo s mortgage risk profile beats that of peers, and UOB&rsquo s unsecured retail loans appear healthy as the lender consolidates Citi&rsquo s assets post-acquisition. OCBC&rsquo s weaker-than-peers quality in SME loans may warrant scrutiny,&rdquo notes Rena Kwok, a credit analyst at Bloomberg Intelligence. According to Kwok, credit losses in Singapore banks&rsquo loans to SMEs appear manageable despite rising headwinds, because of &ldquo improving credit quality nurtured by tight underwriting&rdquo . Interestingly, Kwok points out that risks might also be offset by the extension of the enterprise-financing scheme and the energy efficiency grant in the 2023 budget to assist local SMEs with funding and higher energy prices. &ldquo UOB may gain the most from the budget, given its larger-than-peers SME loan portfolio,&rdquo she says. DBS&rsquo s mortgages are likely to be more resilient than peers in the event of a recession. &ldquo As of 4Q22, the average probability of default (PD) of DBS&rsquo s mortgages stood at 0.5%, the lowest in its peer group. The lenders have kept their mortgage PDs below 2.5% since 4Q2019, thanks to tight risk controls, low loan-to-value ratios, resilient households and macroprudential steps,&rdquo Kwok says. These are likely to keep credit losses limited. See also: SVB collapse unlikely to cause systemic risk, say analysts Securities portfolio of banks All banks have available for sale (AFS) securities as part of a diversified asset base. According to an OCBC Credit Research report, SVB&rsquo s balance sheet was highly unique with its assets focused on investment securities, and liabilities skewed to deposits. SVB&rsquo s investment portfolio comprised 55% of its total assets as at the end of 2022 while Bloomberg reported that amongst 74 major US banks, none had more than 42%. &ldquo A closer look at home shows a similar ratio at less than 20% for Singapore&rsquo s local banks,&rdquo OCBC Credit Research says. Indeed, as at end-2022, DBS&rsquo s government bonds and T-bills, and bank and corporate securities account for around 19.7% of total assets, while the loan portfolio accounts for 55% of assets. Government securities and T-bills account for 15.5% of OCBC&rsquo s assets (excluding Great Eastern Holdings) while loans accounted for 63%. At UOB, Singapore and other government securities accounted for 14.2% of assets, while loans accounted for 62.5%. Hence Singapore banks have a diversified asset base, including diversified loan portfolios. Furthermore, Singapore banks are diversifying their loan portfolios geographically. The mark-to-market losses from the local banks&rsquo available for sale securities portfolio are very modest. &ldquo Singapore banks with big excess capital reserves over minimum regulatory hurdles can cope with any unexpected credit losses if the financial problems of SVB destabilise markets. Unrealised investment losses [for the local banks] due to higher-for-longer rates look manageable,&rdquo notes Kwok. &ldquo SVB&rsquo s loan portfolio, albeit smaller than for standard commercial banks that comprise above 50% of total assets, is also highly concentrated as at the end of 2022 with around 56% of its loans to primarily private equity/venture capital clients that are for capital call lines secured by LP capital commitments,&rdquo OCBC Credit Research points out. In addition, 87.5% of its deposits as at end-December were not FDIC insured, with 59.1% in the form of demand deposits which can be withdrawn more easily (versus checking and savings accounts), OCBC Credit Research adds. To stay ahead of Singapore and the region&rsquo s corporate and economic trends, click here for Latest Section Ample capital and liquidity In sum, the local banks have ample capital based on their common equity tier 1 ratios, and ample liquidity &mdash based on the liquidity coverage ratios and net stable funding ratios. &ldquo We are a domestic systemically important bank in Singapore with a sizable and diversified deposits base. Our securities portfolio is short duration and highly liquid and repurchase eligible. The above attributes are reflected by our strong liquidity ratios, with liquidity coverage ratio and net stable funding ratio both comfortably above regulatory,&rdquo a UOB spokesperson says. Similarly, a DBS spokesperson says, &ldquo We have very strong liquidity and a diversified funding base that is supported by a solid retail customer deposit franchise. As can be seen from our recent financial results, our loan book benefits from rising interest rates while our debt securities portfolio has a relatively short duration.&rdquo While the local banks&rsquo Casa (Current Account Saving Account) ratios have fallen y-o-y because of customers&rsquo switching to higher-yielding fixed deposits, the banks remain well funded by deposits as evidenced by the y-o-y decline in loan-to-deposit ratios. Largest NIM and NII growth over While the local banks are structurally well positioned to ride the turmoil in the global banking sector, the largest gains for their net interest margins and net interest income may well be over for the time being. &ldquo Margins will peak, and tepid loan growth will crimp further upside,&rdquo says S& P credit analyst Ivan Tan. NIMs look set to peak this year after consecutive quarters of rising asset yields throughout 2022. Singapore&rsquo s Sora and Sibor have been rising in tandem with the Fed&rsquo s hikes. Policy rates are also on the uptrend in all of the major overseas markets where Singapore banks operate, except China. &ldquo In our view, the upside on interest margins will likely start tapering and peak in the middle of 2023, in line with the likely cresting in the Fed&rsquo s rate cycle,&rdquo Tan says. At the same time, funding costs are starting to catch up. &ldquo Depositors have been shifting into higher-yielding fixed deposits, and the proportion of low-cost current and savings account deposits has steadily declined over consecutive quarters,&rdquo he indicates. In addition, borrowing appetite will likely moderate this year. S& P Analytics is forecasting loan growth in the low and mid single-digits in 2023. Systemwide gross loans for Singapore commercial banks have declined for three consecutive months since September 2022, the report says. This coincided with a spike in lending yields, which will continue to weigh on consumers and businesses this year. Other headwinds on credit demand include property-cooling measures in Singapore and recession risk for major economies, the report adds &ldquo The realities of higher borrowing costs, coupled with still elevated inflation, will register more prominently in 2023,&rdquo says Tan. Gross NPL ratios for banks could weaken slightly over the next 12&ndash 18 months. The banks also have exposure to economies in Indonesia and Thailand, where the level of restructured loans remains elevated post-Covid, the S& P report says. With the highest growth over, and risks emerging, Maybank is downgrading the banks. While it has a top preference for DBS, it has downgraded UOB and OCBC to neutral. 
|
||||
| Useful To Me Not Useful To Me | |||||
|
chartistkao1
Supreme |
17-Mar-2023 13:22
|
||||
|
x 0
x 0 Alert Admin |
2009
https://www.reuters.com/article/us-banks-toxic-idUSTRE50I42Y20090119
2023
https://www.nytimes.com/2023/03/13/business/smaller-banks-stocks.html
|
||||
| Useful To Me Not Useful To Me | |||||
