Singapore central bank urges prudence in bank finances amid Covid recovery

Singapore's central bank urged banks to keep their finances strong and resilient to "shocks", in case of an abrupt rise in unemployment and business insolvencies due to pandemic

Singapore's central bank urged banks on Monday to keep their finances strong and resilient to "shocks", in case of an abrupt rise in unemployment and business insolvencies due to the COVID-19 pandemic.

Although the economic outlook had improved recently, there remained a risk of a further deterioration in the ability of individuals and companies to repay debt, if the pandemic continued to cause prolonged disruptions to economic activity, the Monetary Authority of Singapore (MAS) said in its annual financial stability review.

"Unemployment and business insolvencies could in turn rise abruptly......banks should therefore continue to remain prudent in managing their balance sheets, to