Singapore authorities say commodity finance “stable” amid growing market concerns A Singapore senior minister says the city-state’s financial regulator does not plan to inject liquidity into the commodity finance market, insisting access to finance from the banking sector remains robust. Tharman Shanmugaratnam, a senior government minister in charge of the Monetary Authority of Singapore (MAS), said this week that demand for working capital has increased among commodity traders due to higher margin requirements. As a result, traders “have had to use derivatives more widely to hedge their exposures against price volatility”, he said in response to a parliamentary question on risks to the financial sector. “Firms which do not manage their risks well may run into difficulty in servicing their loans.” In addition, virus containment measures introduced in China are expected to disrupt production and supply chains, causing “spillover effects” on the city-state’s trading activity, Shanmugaratnam said. The total exposure to commodity finance transactions among Singapore’s banks totalled S$109bn (US$79bn) at the end of last year, equivalent to around 9% of their overall credit exposure, he added. Read more: https://ngulminthanglhangh.wixsite.com/ngulminthanglhanghal/post/singapore-authorities-say-commodity-finance-stable-amid-growing-market-concerns #Agritrade #AllianzTrade #CommodityFinance #FinancialStabilityBoard(FSB) #HinLeong #KlaasKnot #MonetaryAuthorityofSingapore(MAS) #TharmanShanmugaratnam #Ngulminthang #NgulminthangLhanghal