The central bank of Singapore warned individuals on Friday to exercise caution when taking on additional mortgage debt because the city-households, state’s corporations, and banks had experienced an increase in financial risk this year.
The increased risk was primarily caused by the dismantling of precautionary buffers connected to the pandemic, according to the Monetary Authority of Singapore’s annual financial stability review.
However, the stress test conducted by the central bank revealed that while banks have strong capital positions, corporations and households are ‘resilient to macrofinancial shocks.’
Post Your Comments