Moody's lowers outlook for Singapore's banking system to negative
A rapid rise in loans and soaring property prices in Singapore have led ratings agency Moody's to lower its outlook for Singapore's banking system to "negative" from the previous "stable" outlook.
Years of low interest rates and healthy economic growth have led to an increase in borrowings and asset inflation in Singapore, Moody's said on Monday.
Given an impending rise in interest rates, these trends could spell trouble for the country's banks, it added.
Moody's noted that household debt has risen to 77.2 per cent of gross domestic product as of March this year, from 64.4 per cent at end-2007.
A rapid rise in loans and soaring property prices in Singapore have led ratings agency Moody's to lower its outlook for Singapore's banking system to "negative" from the previous "stable" outlook.
Years of low interest rates and healthy economic growth have led to an increase in borrowings and asset inflation in Singapore, Moody's said on Monday.
Given an impending rise in interest rates, these trends could spell trouble for the country's banks, it added.
Moody's noted that household debt has risen to 77.2 per cent of gross domestic product as of March this year, from 64.4 per cent at end-2007.
