Relief extension to smoothen out credit costs for Singapore banks: analysts

Kelly Ng

Published Tue, Oct 6, 2020 · 09:50 PM

Singapore

ANALYSTS see a mild positive on the Singapore banks from the latest move by the Singapore regulator to extend debt relief for certain individuals and small businesses into 2021.

OCBC Investment Research said on Tuesday that the latest measures are in line with ongoing proactive industry efforts to smoothen out the impact of the pandemic on banks' asset quality and ease concerns over potential cliff effects from the expiry of support measures.

"Time will be needed for the credit cycle to play out," it added. "A modest growth outlook and prolonged low interest rates will continue to limit the s…