OTC MARKET NEWS Powered By Quantifi

Stress tests for banks becoming more crucial: Singapore 

June 29, 2016

Jamie Lee, The Business Times

Given the fragility of global markets in a low-growth, low-rate environment, stress tests on banks will become an increasingly important and integral part of risk management in the financial sector, said Monetary Authority of Singapore (MAS) deputy chairman Lim Hng Kiang on Tuesday.

This imperative has emerged even as the unexpected result of the United Kingdom's vote to leave the European Union weighs on market confidence and an already-listless global recovery, he said at the 43th annual Association of Banks in Singapore dinner.

Mr Lim, who is also Minister for Trade and Industry, said: "Risks remain, not least the prospect of political instability and the possibility of a rise in protectionist tendencies in the major economies. A tougher macroeconomic environment and growing complexity of operational and technology risks will place greater demand on banks' risk management and compliance systems."

Banks must therefore regularly test the robustness of their contingency plans and their capabilities to manage "tail-risk events". Read more

Comments are closed on this post.


Submit your email to receive our newsletter