Local banks continue to fund their assets with non-bank deposits which make up more than 80% of their funding. In 3Q2024, the three local banks’ current account savings account (Casa) ratios to total deposits rose as customers moved to Casa when interest rates appeared to fall.
In its Financial Stability Report 2024, the Monetary Authority of Singapore says the results of the industry-wide stress test (IWST) 2024 affirm that banks in Singapore have adequate capital buffers to weather potential downside risks.
Liquidity buffers of the domestic systemically important banks (D-SIBs) including the three locally listed banks are well above all-currency and SGD minimum regulatory liquidity coverage ratio (LCR) requirements and net stable funding ratios (NSFR), although NSFRs have fallen from their highs in 1Q2024 and 2Q2024. The other D-SIBs are Citibank, HSBC, Standard Chartered and Malayan Banking.
