Asia bank capital series: Singapore Basel III implementation explained

Author: Ashley Lee | Published: 2 Sep 2013
  • Earlier this year the Basel Committee said that Singapore is compliant with the Basel framework. It was only the fourth jurisdiction to be assessed;
  • Singaporean banks are well capitalised, and its central bank’s implementation standards are higher than those specified in the Basel III framework;
  • United Overseas Bank has already issued an additional tier 1 (AT1) bond, while DBS has established a programme to issue contingent convertible bonds.

Singapore is proving a trailblazer for Basel III implementation, with the country’s banks already looking to innovative capital raising instruments.

In March, the city-state became only the fourth jurisdiction to be deemed Basel compliant by the Basel Committee on Banking Supervision (BCBS), joining the EU and US which had been assessed in October 2012.

But Singapore-incorporated banks were well prepared...