Phillip Securities research analyst, Glenn Thum:

“Singapore banks differ from SVB as the majority of (SVB’s) assets are in loans. Singapore banks’ ratio of securities to assets is 15 per cent, compared to SLB’s 57 per cent.”

“While Singapore banks also face bond losses, the larger composition of variable rate loans results in the ability to pass on the higher interest rates to customers.”

“While the quality or permanency of deposits is difficult to ascertain, SVB deposits almost tripled over three years. In comparison, Singapore banks only rose 22 per cent. The sudden spike for SVB does suggest the immaturity of the deposits.”

“While SVB moved the majority of their fresh deposits into securities, Singapore banks’ focus was kept on loans growth and with the rise in interest rates, the higher funding costs could be passed on directly to their customers as a majority of the loans were on a floating rate.”