European banks have a 19 per cent slice of the domestic loans market here – the highest level of any Asian nation.
Such a high proportion – European banks have only 14 per cent of Hong Kong’s market – could expose Singapore to the euro zone’s debt woes.
The numbers from the Bank of International Settlements, dubbed the central bankers’ central bank, were cited by Swiss bank Credit Suisse at a conference here yesterday.
Credit Suisse economist Robert Prior-Wandesforde noted that the European bank slice of domestic loans in Singapore may be at a historic high, a reflection of the country’s liberal banking system. -By Melissa Tan