u can say i am licking the boots of MIW.
Pl read first and talk later .SG has cooled down property
market
in May 1996 ,well before 1997 crisis and shot few warning
shots
recently before sub prime loan troubles.
In this internet era,no need to meet the Master in Chinese
temple to consult the important policy,just
use SMS lah!!
Sometimes,u has to believe Singapore old and new gurards
have crystals balls in their safes!!
....14. This year, we have already had several reminders of the
risks in the system. The Chinese stock market has experienced a few
incidents of volatility following expectations of and actual
government action. It remains vulnerable to further corrections. In
the US, the sub-prime market has imploded. More recently, US
treasuries have come under severe selling pressure, causing
interest rates to rise and generating unease in stock
markets.
15. Nevertheless, the financial system has been resilient so far.
Have we learnt our lessons from past crises and are now better
prepared? Or are we just plain lucky? Whichever the answer, we
should remain vigilant.
16. As bankers, you will be familiar with the saying that bad loans
are made in good times. This saying is particularly worth repeating
when the environment appears rosy and serves as a reminder that
vigilance is our constant responsibility. With this in
mind, MAS initiated a survey of risk managers and traders, many of
whom are based in Singapore, about their key risk concerns. This
poll was conducted between April and June this year. A roundtable
discussion was also held with risk managers. Let me now share with
you some of the findings from this survey.
17. The feedback received was open and honest and many views were
shared. Most respondents
believed that asset prices were frothy and that a big shock could
happen. Some speculated that this could happen before the end of
2008.
In this age of increased connectivity and correlation of markets,
respondents felt that a shock event such as a terrorist attack,
pandemic or geopolitical instability could cause market
disruptions.
18. Respondents also highlighted the current liquidity in the
financial markets. They observed that speculative liquidity was
circulating in the financial system. This has led to historically
unprecedented pricing and terms. When referring to the new players
in the financial markets, respondents spoke of hedge funds and
private equity in the same breath as highly leveraged,
covenant-lite structures and large speculative positions. In
the current low interest rate environment, many yield-hungry
investors have become hedge providers for institutions. Respondents
expressed concern about the systemic risks such providers posed and
their default risk in a severe market correction.
19. In summary, the responses to the survey indicated that there
seems to be a heightened level of risk in the macroeconomic and
financial environment. Nevertheless, these responses are
encouraging from another perspective. They indicate that financial
institutions are aware of this heightened level of risk. With
acceptance comes preparedness for the risks that may materialize in
future.
20. It is important for banks not to become complacent. As banks
pursue the many opportunities that lie ahead, we must not let our
guard down. Banks must not be lulled into a false sense of security
by the external environments bullishness and resilience to shocks
so far. We must not allow ourselves to get over-confident with our
knowledge and analyses of the risks out there. Risks may deviate
from expectations. Situations may take unexpected turns. In the
face of such uncertainties, being prepared and ready is always a
good proposition.....
----(A)Mr
Lim Hng Kiang, Minister for Trade & Industry and Deputy
Chairman, Monetary Authority of Singapore, at the ABS Annual
Dinner
on 29 June 2007,
(B)-- DIRECTORS
4. Mr Lim Hng Kiang---/www.gic.com.sg
2.Has SG taken any precautions against the troubles?
