Singapore banks to remain resilient even as lending slows and credit quality looks set to weaken

The banks can reprice the rates on their savings and fixed deposits quite easily, said Maybank Kim Eng. PHOTO: ST FILE
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SINGAPORE - Even as the race for savings and fixed deposits (FDs) shows no signs of letting up, concerns are emerging that as the economy slows and loan demand falls, banks may end up with deposits which they cannot lend out but have committed high rates for.

Market watchers said this situation has never happened before, and they remain confident the banks can reprice their deposit rates lower if necessary.

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