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.

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