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Rising NPLs should be viewed in the right perspective: MAS’s Menon

Samanatha Chiew Published on Mon, May 29, 2017 / 5:49 PM GMT+8

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SINGAPORE (May 29): Rising non-performing loans (NPLs) must be viewed in the right perspective, says Ravi Menon, Managing Director of Monetary Authority of Singapore (MAS).

Banks are in the business of intermediating risk. And when risks materialise – as they sometimes do when those who borrow get into difficulties – NPLs must rise, explains Menon at his opening remarks at the annual Symposium on Asian Banking and Finance held on Sunday.

“This may be odd for a regulator to say – but if NPLs did not rise at all during difficult times, then the banks are probably not lending enough or taking on sufficient risk to promote business expansion or enterprise,” says Menon.