DBS: Mideast Conflict Drives Safe Haven Flows
Singapore-based DBS is seeing safe haven flows in the midst of the conflict in the Middle East, resulting in deposit growth.
DBS is observing safe haven flows supporting deposit growth amid the ongoing conflict in the Middle East, according to an exchange filing responding to questions ahead of its annual general meeting, though it warns that this could also result in downward pressure on interest rates in Singapore. Market volatility can also benefit trading income but also negatively affect investor sentiment and wealth management activity.
On managing the downside from the event, DBS said it employs a «robust set of frameworks and processes to monitor and manage potential risks».
«These include rigorous customer selection, risk scenario planning supported by early warning indicators, watchlisting and regular stress testing,» the bank explained. «While the eventual outcome of recent events remains uncertain, our strong general allowance buffers, solid capital position and robust liquidity, together with our proven agility, position us well to navigate the risks and capture opportunities.»
