“During the Global Financial Crisis (GFC 2008 - 2010) Registered Finance Companies (RFCs) managed to achieve attractive interest margins as RFCs genarally borrow short term and lend long term as their high interest earning lending portfolio is financed by lower cost borrowings”
Sanjeewa Fernando
“In a declining interest rate scenario, Banks will reprice their liabilities (deposits etc.) faster than their assets (loans etc.)resulting in higher Net Interest Margins in the short term.”
“With all this consumer debt, business debt, government debt, smaller movements in interest rates have a magnified effect... a small movement can tip the boat.”
Bill Gross
“In a relatively low interest rate environment, Commercial Banks will record growth in deposits via the growth in the Current And Savings Accounts (CASA) base owing to the prevailing low rate differential between Fixed Deposits and Savings Deposits”
“Rate cuts may spur credit growth, however a government will have to keep a closer eye on it's inflation in order to minimize the demand pull inflationary effect”
“Singapore Property Price Index has hit a high of 140+ but economic fundamentals are entirely different from the last Asian Financial Crisis. Real estate investors advised to be cautioned with buying and might be a good idea to refinance mortgage debts...”
Zeng Han Jun
“Property prices may drop, but I do not think it will drop that fast. The consumers are more financially educated as compared to the last crisis, plus the interest rates are very low now...”
