THE three Singapore banks' strong capital position will help them
absorb more loans souring which may happen when interest rates rise from
current low levels, said Standard & Poor's (S&P) analyst Ivan
Tan.
"Their capitalisation is quite high," said Mr Tan on Tuesday, adding
that their Tier 1 capital ratios average 12-13 per cent, well above the
regulatory 8 per cent minimum.
The three local banks - DBS Group Holdings, OCBC Bank and United
Overseas Bank - are rated AA- by S&P, a rating which is higher than
other banks in the region. Mr Tan was elaborating on a just-released S&P report that said
Asean banks' asset quality could weaken over the next 12 to 18 months.
No comments:
Post a Comment