Singapore’s increasing reserves of foreign currency, securities and assets on the rise in 2017. The Monetary Authority of Singapore (MAS) has issued preliminary data showing the outstanding performance of Singapore’s reserve strategy.
A comparative analysis of the situation in September 2016 and September 2017 has showed an increase of 8.68% for assets; a 8.78% for Foreign Currency; and a 8.04% for securities.
With an average of 8.5% of increase in the reserves, is only natural to further perceive Singapore’s economy as stable and one of the strongest in the region.
European Central Bank’s proposed addendum to its guidance for Banks on Non-Performing Loans (NPLs)
The European Central Bank (ECB) has published for consultation its draft addendum for the guidance on NPLs published on March 20th, this year. This addendum has the target to reinforce timely provisioning and write-off practices.
The minimum levels of prudential provisions for new NPLs proposed in this addendum are intended to apply since January 1st, 2018 and are not applicable to the already accumulated €1tn of bad debts already issued.
This minimum levels of prudential provisions will take into account the length of time a loan has been non-performing and the extent and valuation of collateral. In the case of unsecured loans, the banks are expected to provide full coverage within 2 years and for secured loans within 7 years. Even though, the guidance is not binding, the banks that are expected to provide a detailed explanation for any deviation from the guidance.
The public hearing of the ECB will be held on November 30th, 2017 at the ECB’s premises in Frankfurt.