Trends in Financial Intermediation : Implications for Central Bank Policy

Accommodative global liquidity conditions post-crisis have translated into low domestic borrowing costs and strong domestic credit growth, with household and corporate leverage trending upwards. Bank lending remains the predominant source of financing in Singapore, with cross-border and foreign currency exposures growing as the domestic banking system channels funds to emerging Asia. The Monetary Authority of Singapore (MAS) closely monitors the potential financial stability implications of such trends in financial intermediation. With monetary policy directed at securing medium-term price stability for the overall economy, MAS employs macroprudential tools and complementary policies to address specific financial stability risks.Full publication: "http://ssrn.com/abstract=2692232" What Do New Forms of Finance Mean for EM Central Banks?