Singapore Banks

Dear Mr Tan,

Many of the banks in America are reporting big write-downs on their credit portfolios, in the billions of dollars. Will this situation apply to Singapore banks?

REPLY

I recall that the Singapore banks had acted earlier and made provision for the write-down on their collaterialised debt obligations. The bank stocks are now trading at 10% to 15% below their recent peak.

I have seen some recommendations from stockbrokers that the banks represent good value at the current level.

However, it is difficult to know if there will be further write offs.