Warning to banks
Monday, July 2, 2007
SINGAPORE'S trade minister warned banks on Friday to be extra vigilant in the current environment of ample liquidity and bullish markets to spot economic and financial risks and be prepared to handle shocks.
"It is important for banks not to become complacent. As banks pursue the many opportunities that lie ahead, we must not let our guard down," Trade and Industry Minister Lim Hng Kiang said, in a dinner speech to bankers.
"Banks must not be lulled into a false sense of security by the external environment's bullishness and resilience to shocks so far. We must not allow ourselves to get overconfident with our knowledge and analyses of the risks out there."
Lim, who is also the deputy chairman of the Monetary Authority of Singapore, Singapore's central bank, warned that risks may deviate from expectations.
Citing a central bank survey of risk managers and traders, he said that most industry players believed that asset prices were frothy and that a big shock could happen, possibly before the end of next year. Reuters
"It is important for banks not to become complacent. As banks pursue the many opportunities that lie ahead, we must not let our guard down," Trade and Industry Minister Lim Hng Kiang said, in a dinner speech to bankers.
"Banks must not be lulled into a false sense of security by the external environment's bullishness and resilience to shocks so far. We must not allow ourselves to get overconfident with our knowledge and analyses of the risks out there."
Lim, who is also the deputy chairman of the Monetary Authority of Singapore, Singapore's central bank, warned that risks may deviate from expectations.
Citing a central bank survey of risk managers and traders, he said that most industry players believed that asset prices were frothy and that a big shock could happen, possibly before the end of next year. Reuters
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