Plummeting oil prices slam Singapore banks with stressed assets

OCBC’s nonperforming assets surged 91% in Q2.

The plunge in oil prices is catching up with Singapore’s three largest banks, according to Bloomberg.

DBS and Singapore’s two other large banks, Oversea-Chinese Banking Corp. and United Overseas Bank Ltd., are exposed to the downturn in the energy sector as a result of their lending to local companies which provide construction, shipping and maintenance services to the oil and gas industry. Many of those companies are suffering as the plunge in crude prices since 2014 curtailed exploration and other activity by oil and gas producers.

Read the full report here.