Singapore, HK Capital Ratios Already Higher than Basel Requirements

Hong Kong and Singapore lenders need not worry about new rules set by global banking regulators, as their capital ratios are already higher than the new Basel III requirements.


In an interview with the South China Morning Post, Arthur Yuen Kwok-hang, deputy chief executive of the Hong Kong Monetary Authority, said Hong Kong's top-quality capital had reached 10.3% while their tier-1 capital had averaged 12.1% at the end of June, already higher than the Basel requirement which is set at 7%.


The only impact of Basel III would be that lenders might have to revise their loan portfolios over the next few years to require less capital back-up, notes the Post.


The new requirements will also have minimal impact on three Singapore lenders--DBS Group Holdings Ltd, United Overseas Bank Ltd, Oversea-Chinese Banking Corp.--as as their current capital adequacy ratios are way above the Basel requirements, reports the Straits Times.




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