As Channel NewsAsia relates, the Republic's banking industry is in good shape, with the prudential and regulatory frameworks for banks here "remaining strong" and regulator Monetary Authority of Singapore (MAS) continuing to be proactive in its oversight, says Fitch Ratings.
Local regulatory standards are "progressing apace with global best practices", the ratings agency said in its report on the local banking system on Thursday (Aug 28). For instance, banks here have maintained high capitalisation under MAS' Basel III rules - which is 2 percentage points above those prescribed by the Basel Committee.
Another example is how the three local banks - DBS Bank, Oversea-Chinese Banking Corp (OCBC) and United Overseas Bank (UOB) - will need to meet a minimum core Tier 1 capital adequacy ratio (CAR) of 9 per cent, Tier 1 CAR of 10.5 per cent and total CAR of 12.5 per cent.
Fitch says the banks already meet these requirements as of end-June 2014.