Basel III framework may not always accurately represent capital strength
Chng Sok Hui, CFO of Singapore's DBS, discusses the impact of new capital rules on Asian banks, how BCBS seeks to address them, and the need for local adaptation.
On the implementation of Basel III, Chng feels that Asian banks are ahead of their counterparts in the US and Europe in their preparedness for implementation of the enhanced capital requirements, but thinks that this could be a source of competitive disadvantage.
“The new capital charges create an unbalanced playing field. Some jurisdictions like Singapore have introduced Basel III with the AVC and CVA capital charges effective January 1st 2013 while others such as the EU and the US have delayed implementation. It is a challenge for us to compete when the playing field is uneven,” she…
Please login to read the complete article. If you already have an account, you can login
Categories: Basel III
, Risk and Regulation
, Chng Sok Hui
, Stefan Ingves