
Lingering concerns over banks’ asset quality “overblown”, says Nomura
Large-scale defaults are isolated cases.
Lingering market concerns over the soundness of banks’ asset quality seems “overblown”, Nomura stated in a report today.
Nomura noted that the banks’ goal of mif- to high-single digit loan growth for 2015 is achievable, with slower loan growth in Singapore’s housing sector offset by stronger growth in the region.
“Asset quality issues, so far, have been one offs rather than posing systemic risk. Default on a property loan at UOB and a nonperforming loan in the commodity segment for DBS so far suggests that these are isolated cases,” Nomura noted.