BANKS

BANKS: DBS, OCBC, UOB and others like Standard Chartered Bank are the major beneficiaries of European banks's retreat from trade financing, esp since private bank (PB) clients typically have a substantial portion of their wealth in USD.

Both DBS and OCBC have seen their USD loan to deposit ratio surging to 166-171% at end 3Q11 as demand for USD trade finance loans piled in. DBS highlights that ‘on the PB front, cachet as a bank that is safe, coupled with attractive deposit rates, have enabled them to see good growth momentum in new clients, with total deposits rising by 22% since end-2010.

Non-SGD deposits account for >75% of DBS's total PB deposits. Stanchart highlighted having a PB is a natural source of liquidity; in a tough environment, customers may stay in cash longer that helps bank’s funding.