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19-05-2012, 12:04 AM
I was reading around some Armaggedon websites on the widespread effects of an end of the EU.
Then it struck me to check on the effects of "what if" exposure of Singapore banks to Euro crisis.
I am putting two articles link below.
Note the websites they are loaded up.
Frankly, as a concerned citizen, I would really hope MAS has standby contigency plans for the eruption of the worse case scenario. SGD is the one of the very few countries in the world to achieve AAA ratings from all three rating agencies.
Graph of the Week: AsiaPac banks’ exposure to the EU crisis
Singapore and Hong Kong will be the hardest hit should euro area banks retreat.
Moody’s assessed the degree of impact on the overall economy of a country by retreats of euro area banks and they found out that the economies of Singapore and Hong Kong will be affected the most. “An escalation of the euro area crisis could quicken the retreat of European banks from the region,” said Jean-Francois Tremblay, Associate Managing Director at Moody’s Investor Service.
[Image: scaled.php?server=515&filename=capture1v...es=landing]
http://asianbankingandfinance.net/retail...-eu-crisis
Asia is safe from Europe's woes, says Fitch
SINGAPORE: Asian economies are better shielded from Europe's financial woes than other regions and China is unlikely to undergo a "hard landing" despite recent gloomy data, credit watchdog Fitch said Monday.
In a media telephone conference, the US-based firm's head of Asia-Pacific sovereigns Andrew Colquhoun said Asia's limited exposure to European banks would buffer it against financial disruption in the debt-stricken continent.
"Asian economies are more dependent on foreign households and consumers buying Asia's exports than they are dependent on foreign banks providing funding," he said.
"Thinking about whether developments in Europe constrain or in any way cap sovereign ratings in Asia, I can be clear that the answer is no," Colquhoun added.
Colquhoun said he was less concerned with China's near-term economic outlook than other commentators despite a slew of data last week indicating a weakening in Asia's largest economy.
China on Saturday announced it would cut the amount of cash banks must keep in reserve after its industrial production growth slumped to a three-year low in April, while trade figures for the month also stagnated.
The country's economy grew an annual 8.1 percent in the first quarter of 2012, its slowest pace in nearly three years, raising fears of a sharp slowdown.
"Fitch expects eight percent GDP growth in 2012... We have not revised that forecast, it was already a somewhat below-consensus forecast and the recent data appeared to be in line with our estimates," Colquhoun said.
"I think that China is experiencing a policy-led slowdown in growth which was implemented by the authorities in response to the inflation pressure that emerged last year, and it seems to me well within the parameters of normal policy management," he added.
Colquhoun said he expected Chinese authorities to be "broadly comfortable with the rate of growth of around eight percent so long as we don't see any adverse impact on the labour market.
"I don't expect China to hit a hard landing... I think the authorities will be happy to see growth slow somewhat to take the steam out of inflation," he added.
China on Friday said its consumer price index, the main gauge of inflation, rose 3.4 percent year on year in April, easing from 3.6 percent in March due to moderating food prices.
Soaring prices have been a politically sensitive thorn in the Chinese government's side, with authorities targeting rates of within four percent this year to curb the potential for social unrest.
Following the bank reserve requirement cut, analysts widely expect the government to further loosen monetary policy as it looks to boost growth.
http://www.channelnewsasia.com/stories/a...81/1/.html
Then it struck me to check on the effects of "what if" exposure of Singapore banks to Euro crisis.
I am putting two articles link below.
Note the websites they are loaded up.
Frankly, as a concerned citizen, I would really hope MAS has standby contigency plans for the eruption of the worse case scenario. SGD is the one of the very few countries in the world to achieve AAA ratings from all three rating agencies.
Graph of the Week: AsiaPac banks’ exposure to the EU crisis
Singapore and Hong Kong will be the hardest hit should euro area banks retreat.
Moody’s assessed the degree of impact on the overall economy of a country by retreats of euro area banks and they found out that the economies of Singapore and Hong Kong will be affected the most. “An escalation of the euro area crisis could quicken the retreat of European banks from the region,” said Jean-Francois Tremblay, Associate Managing Director at Moody’s Investor Service.
[Image: scaled.php?server=515&filename=capture1v...es=landing]
http://asianbankingandfinance.net/retail...-eu-crisis
Asia is safe from Europe's woes, says Fitch
SINGAPORE: Asian economies are better shielded from Europe's financial woes than other regions and China is unlikely to undergo a "hard landing" despite recent gloomy data, credit watchdog Fitch said Monday.
In a media telephone conference, the US-based firm's head of Asia-Pacific sovereigns Andrew Colquhoun said Asia's limited exposure to European banks would buffer it against financial disruption in the debt-stricken continent.
"Asian economies are more dependent on foreign households and consumers buying Asia's exports than they are dependent on foreign banks providing funding," he said.
"Thinking about whether developments in Europe constrain or in any way cap sovereign ratings in Asia, I can be clear that the answer is no," Colquhoun added.
Colquhoun said he was less concerned with China's near-term economic outlook than other commentators despite a slew of data last week indicating a weakening in Asia's largest economy.
China on Saturday announced it would cut the amount of cash banks must keep in reserve after its industrial production growth slumped to a three-year low in April, while trade figures for the month also stagnated.
The country's economy grew an annual 8.1 percent in the first quarter of 2012, its slowest pace in nearly three years, raising fears of a sharp slowdown.
"Fitch expects eight percent GDP growth in 2012... We have not revised that forecast, it was already a somewhat below-consensus forecast and the recent data appeared to be in line with our estimates," Colquhoun said.
"I think that China is experiencing a policy-led slowdown in growth which was implemented by the authorities in response to the inflation pressure that emerged last year, and it seems to me well within the parameters of normal policy management," he added.
Colquhoun said he expected Chinese authorities to be "broadly comfortable with the rate of growth of around eight percent so long as we don't see any adverse impact on the labour market.
"I don't expect China to hit a hard landing... I think the authorities will be happy to see growth slow somewhat to take the steam out of inflation," he added.
China on Friday said its consumer price index, the main gauge of inflation, rose 3.4 percent year on year in April, easing from 3.6 percent in March due to moderating food prices.
Soaring prices have been a politically sensitive thorn in the Chinese government's side, with authorities targeting rates of within four percent this year to curb the potential for social unrest.
Following the bank reserve requirement cut, analysts widely expect the government to further loosen monetary policy as it looks to boost growth.
http://www.channelnewsasia.com/stories/a...81/1/.html