Singapore banks ready for Basel 4

SINGAPORE (July 14): UBS is confident that Singapore banks are well positioned against capital headwinds and will continue to offer sustainable dividend yields despite the anticipated implementation of Basel 4 capital rules.

That was also the view of Ravi Menon, managing director of the Monetary Authority of Singapore, based on comments he made on the regulatory progress since Basel III, says UBS analyst Aakash Rawat.

According to Menon, average Common Equity Tier 1 (CET 1) ratio for large and international banks had doubled in the years from 2009 to 2014, as the liquidity coverage ratio (LCR) rose from 80% to 120% and leverage fell from 22 times to 16 times during the period.

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