[Sg] - DBS has just loaned $30 billion to MAS in a highly profitable win-win deal

[UltimaOnline]

DBS Chief Executive Officer Piyush Gupta said during an analyst call that the bank had lent the Monetary Authority of Singapore S$30 billion as it is “not finding enough opportunities to put the money to work.”

 

[SBFNews]

All these Indians doing punk business behind LHL and LW back.

 

[red amoeba]

We r gong bankrupt and need to borrow from ownself ?

 

[batman1]

MAS loan money to banks ?

 

[k1976]

View attachment 184574


DBS Chief Executive Officer Piyush Gupta said during an analyst call that the bank had lent the Monetary Authority of Singapore S$30 billion as it is “not finding enough opportunities to put the money to work.”

This is a very interesting

 

[k1976]

Most interesting phase - "not finding enough opportunities to put the money to work."

 

[syed putra]

Lend money to MAS for what?

 

[k1976]

US Banks do park their Money in FED during the ultra long low interest period

 

[Hypocrite-The]

Lend money to MAS for what?

Well said....does not make sense at all....MAS can print money....so I hope the oppies look into this

 

[k1976]

https://www.investopedia.com/terms/...r other,would dramatically affect the economy.

• A lender of last resort provides emergency credit to financial institutions that are struggling financially and near collapse.
• The Federal Reserve, or other central bank, typically acts as the lender of last resort to banks that no longer have other available means of borrowing, and whose failure to obtain credit would dramatically affect the economy.
• Some argue that having a lender of last resort encourages moral hazard: that banks can take excessive risks knowing that they will be bailed out.

 

[Hypocrite-The]

https://www.investopedia.com/terms/...r other,would dramatically affect the economy.

• A lender of last resort provides emergency credit to financial institutions that are struggling financially and near collapse.
• The Federal Reserve, or other central bank, typically acts as the lender of last resort to banks that no longer have other available means of borrowing, and whose failure to obtain credit would dramatically affect the economy.
• Some argue that having a lender of last resort encourages moral hazard: that banks can take excessive risks knowing that they will be bailed out.

There has been a movement to bail out the depositors and not the banks...but the cabal will ensure it never happens

 

[syed putra]

So looks like nobiody borrowing money from dbs.

 

[Hypocrite-The]

So looks like nobiody borrowing money from dbs.

That is impossible.... everyone needs to borrow

 

[Laguna123]

Huh why central bank need to borrow from bank?

 

[k1976]

So looks like nobiody borrowing money from dbs.

A very funny paradox... SG property is so red hot... Yet nobody borrow from banks hah?

 

[Laguna123]

What is MAS going to use the funds for? Give sinkie more GST voucher?

 

[congo9]

It actually smarts thing to do.
It to fund your spending and the costs of loan is lower than you actually fund it yourself.

Jamus Lim has actually suggested funding our spending on the covid with loans, but self-righteous PAP came down hard, saying that we should be prudent with our spending. Of course, we are not fritting money away, but we are prudent with it. Borrowing to spend on something you can't afford vs Borrowing to spend so that your costs of lower are 2 different concepts.

 

[Laguna123]

It actually smarts thing to do.
It to fund your spending and the costs of loan is lower than you actually fund it yourself.

Jamus Lim has actually suggested funding our spending on the covid with loans, but self-righteous PAP came down hard, saying that we should be prudent with our spending. Of course, we are not fritting money away, but we are prudent with it. Borrowing to spend on something you can't afford vs Borrowing to spend so that your costs of lower are 2 different concepts.

How come cost of spending by loan is lower than using own fund? Borrow money still need to pay interest but own money no interest?

 

[congo9]

Monetary interest rate is actually dependent on MKT rate.
Each country interest's rate is different every time.
MAS will actually have to pay an interest just to use the money from DBS. There will be interest paid. Not totally zero.

I don't know how exact it goes, but the basic fundamental applies to all economist.

 

[congo9]

The interest rate borrowed quoted to loan to MAS by DBS is definitely lower than market rate.
That's why it is better to borrow from DBS.

MAS with exisiting funds can actually lend out their money with higher interest