Get Smart: Maintaining confidence

Investor psychology can be volatile and unpredictable.

Fear and panic were on full display over the past fortnight as investors yanked their money out of mid-sized US banks at a record pace.

Other than just looking at marked-to-market losses and a bank’s clientele, investors should also look at the country and regulators involved in the bank’s country of domicile.

Moreover, the three banks are well-capitalised with healthy liquidity positions.

With the above facts and the assurance from MAS, investors in the three local banks should breathe easier.