Risk-averse investors push Singapore bank deposits up

Foreign currency deposits skyrocketed to $19b (S$27b) in April.

The surge in Singapore bank deposits was likely spurred by investors’ risk avoidance and inflows from markets such as Hong Kong, as foreign currency deposits quadrupled to $19b (S$27b) in April, reports Bloomberg.

Data from the Monetary Authority of Singapore showed that deposits from non-residents ballooned 44% to $44b (S$62b), the highest since 1991. The increase may have been influenced by the deleveraging of private banking portfolios and fund managers’ positions as risk-averse clients sold financial assets, Bloomberg Intelligence analyst Diksha Gera said.

“Rising tensions in Hong Kong, starting with protests last year and the announcement of a national security law last month could potentially cause flows to Singapore if Hong Kong’s status as a financial center is threatened,” Gera explained.

The rich have long been parking their assets in Singapore and Hong Kong, but the latter has been fraught with protests since last year.

Here's more from Bloomberg.

Photo courtesy of Pexels.com.

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