PP: if that were true, why wouldn't they lend moeny for overseas banks for the huge interest you get these days?
Because they are NOT flooded with cash.
However, local banks are very much involved in real estate, and the current property downhill is eating them up. They are trying to slow it down as much as possible.
So what do you think. Local banks are not flooded with cash?SINGAPORE) Millionaires made a beeline for United Overseas Bank (UOB) last week, swelling its coffers and
causing the bank to end its fixed deposit drive just six days after it began.UOB declined to disclose the amount it had taken in for its $1 million minimum fixed deposit campaign targeted at the rich but a back of the envelope calculation estimated that the bank could have garnered as much as $1 billion. Sources said that such an amount was not unreasonable - it works out to $1 million from 1,000 people - given the 77,000 millionaires in Singapore.
'Our recent fixed deposit drive was part of our on-going efforts to attract potential privilege banking clients and deepen our relationship with existing clients,' said Eddie Khoo, executive vice-president of personal financial services at UOB.
'This move is especially relevant for clients who prefer plain vanilla savings products during periods of uncertainty and high market volatility,' said Mr Khoo.
'It is also consistent with our objective of introducing competitively priced products to meet the financial objectives and risk profiles of different clients,' he said.
UOB had taken out a full page advertisement on Sept 24, targeting those willing to park $1 million or more with it.
It offered to pay 1.708 per cent for a 13-month fixed deposit for amounts of at least $1 million.
Amid the financial carnage, wealthy individuals have taken to diversifying their holdings and local banks seem to be benefiting from this movement.
One retired private banker said that she is fed-up and confused by the constant reports about which bank has taken over her bank.
'I put my money into ABN Amro. Now, I'm not sure whether it's with the Belgian or Dutch government, or BNP Paribas, or is it with RBS?'
Yesterday, the news was that BNP Paribas, France's biggest lender, had agreed to take control of Fortis in Belgium and Luxembourg, completing a break-up of the lender after a government rescue failed. Last year, ABN Amro was bought by a consortium comprising RBS, or Royal Bank of Scotland, Fortis and Bank Santander.
