Fitch Ratings says in a new report that downward rating pressure could gradually increase for Singapore banks, as their credit profiles become increasingly linked to Asia's high-growth markets, through overseas expansion and rising economic integration among major Asian countries.
Singapore is a small economy and domestic banks have always sought growth abroad. Their regional expansion record has been generally conservative, with subsidiaries operating in a self-sustaining manner, where deposit growth and risk-adjusted returns are prioritised over loan growth. Full story
