Singapore banks better placed to absorb losses amid tariff pressures: Bloomberg Intelligence

Singapore banks are better placed to absorb losses and endure economic shocks amid increasing tariff pressures compared to their Southeast Asian counterparts, says Bloomberg Intelligence credit analyst Rena Kwok.

She notes that the city-state’s three banks have “significantly lower” risk-weighted-asset (RWA) density which, beyond complementing their capital and asset quality metrics, can be a proxy of portfolio risk. “[Risk weighted assets] reflects a bank’s risk appetite and its potential vulnerability to financial stress,” says Kwok. “A higher ratio denotes greater exposure to riskier assets and thus a riskier balance sheet.”