Singapore banks’ asset quality the best among ASEAN peers

Gone are the days of extra-low provision cycle.

According to DBS Vickers, days of extra-low provision cycle are over and current levels of 30bps will be the new normal. 

Here's more from DBS Vickers:

That said, Singapore banks’ asset quality is the best among ASEAN peers. While unemployment rates should be watched closely to detect asset quality issues, it is equally crucial to monitor job creation.

While unemployment rate has inched up to 2.1% from 1.9% in 1Q13, job creation has increased significantly. Hence, risk to a NPL spike should be limited at this juncture.