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DBS says US rating cut has negligible impact on positions

DBS says US rating cut has negligible impact on positions
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First Published: Mon, Aug 08 2011. 04 07 PM IST
Updated: Mon, Aug 08 2011. 04 07 PM IST
Singapore: DBS , Southeast Asia’s biggest bank, said the impact of a US credit rating downgrade on its trading and investment positions is “immaterial” and that it is adequately positioned to meet liquidity needs.
“Over the past few weeks, DBS has already taken proactive steps to understand possible repercussions of a UScredit downgrade, including stress-testing our books and portfolios,” said Chng Sok Hui, DBS’s chief financial officer, in an email.
“In terms of our trading and investment positions, on a net basis, the impact is immaterial,” she added.
DBS said its holding of European debt is negligible.
Oversea-Chinese Banking Corp, Singapore’s second-biggest lender, also made a similar statement.
“Given the current level of exposures, the impact of the US sovereign downgrade is not material to OCBC Bank,” said Koh Ching Ching, OCBC’s head of group corporate communications .
Analysts said Asia’s banks are seen facing a bump-up in dollar-funding costs and potentially slower credit growth after Standard & Poor’s (S&P) US debt rating downgrade, strengthening China’s case to push the yuan as a global alternative to the dollar.
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First Published: Mon, Aug 08 2011. 04 07 PM IST
More Topics: US Debt | DBS | Investment | Bank | Corporate News |