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Can covid19 collapse banks?

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Old 04-04-2020, 04:15 PM   #1
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Can covid19 collapse banks?

Didn’t cross my mind earlier on, but The situation keeps developing, I wonder how banks might be affected. I think MAS will make sure our 3 big banks stay up but i dunno about foreign banks. My equities holdings are with scb and i have substantial cash deposits with them too. Anything thoughts?
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Old 04-04-2020, 04:17 PM   #2
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Overleverged banks are on brink

Always asking for bailouts
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Old 04-04-2020, 10:20 PM   #3
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In the 2008 crisis, the Singapore government increased bank deposit coverage to unlimited. I would expect something similar if things continue to spiral downwards.
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Old 05-04-2020, 08:12 AM   #4
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In the 2008 crisis, the Singapore government increased bank deposit coverage to unlimited. I would expect something similar if things continue to spiral downwards.
That’s good to know. They did it for deposits in ALL banks?
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Old 05-04-2020, 08:14 AM   #5
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Banks are scam already fragile

Just part of the fallout
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Old 05-04-2020, 08:37 AM   #6
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I think that, relatively speaking, the 3 local banks would be safer than SCB. I m not saying that SCB is unsafe.
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Old 05-04-2020, 08:43 AM   #7
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Banks are scam already fragile
What does this statement mean?
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Old 05-04-2020, 09:26 AM   #8
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Didn’t cross my mind earlier on, but The situation keeps developing, I wonder how banks might be affected. I think MAS will make sure our 3 big banks stay up but i dunno about foreign banks. My equities holdings are with scb and i have substantial cash deposits with them too. Anything thoughts?
So I don't have any particular insight, but:

1) The big three Singaporean banks are hilariously well-capitalized. They're not going anywhere.

2) Stanchart is fine, they're not going anywhere either.

The market says Stanchart is a pretty boring European bank—their credit risk trades on par with big, boring names like HSBC and UBS. They're not quite a Rabobank (which IIRC is kind of famous for being the most resilient bank in the world), but they're certainly closer to Rabobank than they are to the wack-ass Italian banks.

Anyway, let's be clear - no matter what happens to any bank, your deposits will be insured up to the $75000 SDIC insurance limit. And your equities at Stanchart are ring-fenced from the bank itself; if Stanchart were to go down, nothing would happen to your stocks.
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Old 05-04-2020, 09:49 AM   #9
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Anyway, let's be clear - no matter what happens to any bank, your deposits will be insured up to the $75000 SDIC insurance limit. And your equities at Stanchart are ring-fenced from the bank itself; if Stanchart were to go down, nothing would happen to your stocks.
Ya, the sdic part i am aware although i have more than 75k with them but its good to know my equities in custodian holdings are protected.
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Old 05-04-2020, 10:05 AM   #10
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Didn’t cross my mind earlier on, but The situation keeps developing, I wonder how banks might be affected. I think MAS will make sure our 3 big banks stay up but i dunno about foreign banks. My equities holdings are with scb and i have substantial cash deposits with them too. Anything thoughts?
banks will affected once the economies start cracking and massive credit defaults. Hence why all gov are hesitant to put in place lockdown.

its a domino effect. lower consumer spending>businesses shutdown> banks affected > economies collapse >lose jobs > no spending (repeat from 1)
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Old 05-04-2020, 10:09 AM   #11
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Ya, the sdic part i am aware although i have more than 75k with them but its good to know my equities in custodian holdings are protected.
You’re certainly allowed to reduce your cash holdings to S$75,000 if you’re concerned about the SDIC limit. Also please note there is no SDIC coverage for foreign currency deposits.
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Old 05-04-2020, 10:50 AM   #12
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So I don't have any particular insight, but:

1) The big three Singaporean banks are hilariously well-capitalized. They're not going anywhere.

2) Stanchart is fine, they're not going anywhere either.

The market says Stanchart is a pretty boring European bank—their credit risk trades on par with big, boring names like HSBC and UBS. They're not quite a Rabobank (which IIRC is kind of famous for being the most resilient bank in the world), but they're certainly closer to Rabobank than they are to the wack-ass Italian banks.

Anyway, let's be clear - no matter what happens to any bank, your deposits will be insured up to the $75000 SDIC insurance limit. And your equities at Stanchart are ring-fenced from the bank itself; if Stanchart were to go down, nothing would happen to your stocks.
This is true.
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Old 05-04-2020, 01:22 PM   #13
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Just in the US, one small bank (with asset of ~$130mil) had fallen this week. Depending on the banks' capital strength to weather the storm.
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Old 05-04-2020, 01:23 PM   #14
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Banks are riding on thin ice

Depends on loans for income

Game over
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Old 05-04-2020, 01:32 PM   #15
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You’re certainly allowed to reduce your cash holdings to S$75,000 if you’re concerned about the SDIC limit. Also please note there is no SDIC coverage for foreign currency deposits.
How strong is CIMB bank Singapore May I know? Is it well capitalized?
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