You would probably read about Hin Leong Trading scandal whereby the company recently revealed US$800 million of undisclosed losses and the company is seeking US$3.85 billion in debt. It was mentioned that Hin Leong Trading owes US$3.85 billion to 20 lenders.

Thinking that it will not affect you? As the saying goes “One problem leads to another”, among the lenders are the local banks DBS (SGX:D05) , UOB (SGX:U11) and OCBC (SGX:O39). They have a combined exposure of at least US$600 million to Hin Leong Trading. OCBC Bank currently makes up 2.53% of my stock portfolio and I am looking at adding more during this COVID-19 crisis.

If you look into the financial statements of the 3 local banks, oil and gas bank loans are classified under “Transport, storage and communication” sector. DBS have the highest exposure. Below are the