Singapore Banks Face Risk From Weaker Credit, FX Moves: MAS - Bloomberg Business

Singapore Banks Face Risk From Weaker Credit, FX Moves: MAS - Bloomberg Business: "Property Prices
The recent decline in the Singapore property market suggests a benign scenario, with property prices settling at sustainable levels over time, the MAS said. But the central bank will remain vigilant for signs of renewed "froth" in the residential property market on the back of still-elevated prices in certain market segments, it added.
At the same time, uncertainties in the financial markets and overseas economies could add to the risk of a sharper-than-warranted property market correction, with spill-overs to the banking sector and economy. The MAS said it will continue to monitor the property market carefully for risks to financial stability and take appropriate measures to maintain a stable and sustainable market.
Profitability of companies in Singapore has declined while their borrowing has risen since the 2008 global financial crisis, the MAS said. The median return on assets of companies listed on the local exchange fell to 3.5 percent in the second quarter of 2015, from 3.9 percent in the corresponding period last year.
“Highly leveraged firms in certain sectors could be vulnerable if interest rates were to rise or if the earnings outlook were to weaken,” the MAS said."



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