Singapore Exchange (SGX) lists three locally incorporated banks, DBS Group (D05), OCBC (O39) and UOB (U11) which together make up a quarter of the Straits Times Index (STI) market capitalisation. A key measure of a bank is its tier 1 capital to risk weighted asset ratio. Tier 1 capital represents the best form of capital and the higher the ratio to risk weighted assets, the more money the bank has to support the risks it takes. Together, the Singapore banks maintain a Tier 1 capital ratio to risk weighted assets of 13.6%, as reported by the IMF Global Financial Stability Report last week. Singapore maintains the highest Tier 1 to risk weighted asset ratio across Asia, with Tier 1 capital for Japan Banks at 12.3% and Hong Kong Banks at 10.4%. It is a key measure of the strength of a bank, ...
...Source: SGX Gateway