Monetary Authority of Singapore (MAS), the central bank of Singapore, has revealed that the exposure of the country’s banking sector to the indebted China Evergrande Group is ‘insignificant’

In a reply to parliamentary questions, Tharman Shanmugaratnam, Senior Minister and Minister in charge of MAS said that Singapore’s banking system exposure to China’s property sector is less than 1% of non-bank loans.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

Shanmugaratnam added that country’s property developers with operations in China have exposure to 2.5% of loans to non-bank customers but it includes all loans to these developers, including their Chinese businesses.

“Our banking sector’s loan exposures to China Evergrande Group itself are insignificant,” Shanmugaratnam noted.

Last month, Chinese real-estate developer Evergrande Group, which is over $300bn in debt, announced that it will default on interest payments.

This caused a liquidity crisis in the country and affected markets around the world.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Singapore’s authorities noted that these events could impact China’s GDP growth and they are keeping an eye on any indirect or spillover effects on the Singapore economy.

Notably, the Chinese central bank has infused billions of dollars into the banking system to dampen the impact of the liquidity crisis.

Last week, Evergrande Group announced plans to offload a $1.5bn (CNY9.99bn) stake in Shengjing Bank.

State-owned Shenyang Shengjing Finance Investment Group has come forward to buy 1.75 billion non-publicly traded domestic shares of the lender.

Before that, the Hong Kong Monetary Authority (HKMA) had sought reports from lenders on their exposure to a troubled Chinese developer.