More Asian banks looking to capital markets to boost profits: ADB
By Lynda Hong | Posted: 07 December 2012 2229 hrs
SINGAPORE: More banks in Asia are cutting their lending businesses and mobilising their liquidity in the capital markets to boost profits, said the Asian Development Bank (ADB).
ADB said banks in the past few months have opted to take more risks, such as investing in financial markets, derivatives and securities.
"If you run a bank and you raise the funds not through the core source of funding, which is deposit, it can affect your behaviour in terms what you do with the asset side," said Iwan Jaya Azis, head of the Office of Regional Economic Integration (OREI) at ADB.
More companies are also choosing to raise more funds by tapping the bond market, said experts.
"We are still a bank dependent economy. The banking sector is still the biggest financial sector in the economy. But since 2003, we have seen the bond market in this part of the world growing very fast and of course as it grows fast it is exposed to global uncertainties," said Senior Economist at AMRO Reza Siregar.
To grow Asia's corporate bond market, experts say improvements on financial infrastructure, transparency and ratings should be made.
So far, the corporate bond market has grown faster than sovereign bonds.
However the ADB notes that some Asian countries are still lacking social infrastructure in education and nutrition.
This will raise the need for more sovereign bonds in the coming years.
- CNA/jc
- wong chee tat :)
Showing posts with label Asian Development Bank. Show all posts
Showing posts with label Asian Development Bank. Show all posts
Saturday, December 8, 2012
Friday, November 23, 2012
Newly-launched Clifford Capital says it has "decent pipeline" of projects
Newly-launched Clifford Capital says it has "decent pipeline" of projects
By Linette Lim | Posted: 22 November 2012 2350 hrs
SINGAPORE: Specialist finance firm Clifford Capital launches its operations Thursday on a firm footing.
The company, backed by a consortium of shareholders that includes Temasek Holdings, DBS Bank, Standard Chartered Bank, Sumitomo Mitsui Banking Corporation, Manulife through its unit, John Hancock Life Insurance Company and Prudential Assurance Company Singapore, said it already has a "decent pipeline" of transactions which are spread across broad geographic regions.
The firm, which provides financing to Singapore corporates in bidding for large, long-tenor projects overseas, expects to operate at a steady state within the next two to three years.
Tharman Shanmugaratnam, Singapore Deputy Prime Minister and Finance Minister, Chairman at Monetary Authority of Singapore said: "We are well placed -- the community here, of financial institutions, multilateral development institutions, government working together with Clifford Capital and professional specialists -- we are well placed as a community in Singapore to help to catalyse the development of infrastructural finance in Asia and beyond."
The company aims to have 80 percent of its portfolio comprising projects that involves Singapore-based firms.
These refer to companies listed or incorporated in Singapore with a material presence in the city state.
In turn, the Singapore government will back debt instruments issued by Clifford Capital with a guarantee.
Clive Kerner, CEO of Clifford Capital said: "The debt is guaranteed by the government of Singapore, which is in turn, triple A.
"If you compare that situation with many of the banks in the world at the moment, I'm not sure there are any banks that actually have triple A credit rating, so what that will do is give us a very low cost of funding and we think we'll be able to pass that benefit on to our clients in the form of attractive financing solutions."
Over the next decade, the Asian Development Bank estimates that there will be about US$8.3 trillion worth of infrastructure investment in Asia.
But at the same time, the cost of funding these investments is up.
Ray Ferguson, CEO of Standard Chartered Bank Singapore said: "The rules around Basel III and banks make long term financing harder for banks to provide, particularly financing beyond the sort of five-year level, because it's very difficult for us to get matching deposits.
"So Clifford can come in take the longer term tranches of some of those deals."
For a start, Clifford Capital will focus on financing the infrastructure and offshore and marine sectors with an average deal size of US$50 to US$100 million.
These are the sectors which Singapore firms have the competitive advantage.
- CNA/lp
- wong chee tat :)
By Linette Lim | Posted: 22 November 2012 2350 hrs
SINGAPORE: Specialist finance firm Clifford Capital launches its operations Thursday on a firm footing.
The company, backed by a consortium of shareholders that includes Temasek Holdings, DBS Bank, Standard Chartered Bank, Sumitomo Mitsui Banking Corporation, Manulife through its unit, John Hancock Life Insurance Company and Prudential Assurance Company Singapore, said it already has a "decent pipeline" of transactions which are spread across broad geographic regions.
The firm, which provides financing to Singapore corporates in bidding for large, long-tenor projects overseas, expects to operate at a steady state within the next two to three years.
Tharman Shanmugaratnam, Singapore Deputy Prime Minister and Finance Minister, Chairman at Monetary Authority of Singapore said: "We are well placed -- the community here, of financial institutions, multilateral development institutions, government working together with Clifford Capital and professional specialists -- we are well placed as a community in Singapore to help to catalyse the development of infrastructural finance in Asia and beyond."
The company aims to have 80 percent of its portfolio comprising projects that involves Singapore-based firms.
These refer to companies listed or incorporated in Singapore with a material presence in the city state.
In turn, the Singapore government will back debt instruments issued by Clifford Capital with a guarantee.
Clive Kerner, CEO of Clifford Capital said: "The debt is guaranteed by the government of Singapore, which is in turn, triple A.
"If you compare that situation with many of the banks in the world at the moment, I'm not sure there are any banks that actually have triple A credit rating, so what that will do is give us a very low cost of funding and we think we'll be able to pass that benefit on to our clients in the form of attractive financing solutions."
Over the next decade, the Asian Development Bank estimates that there will be about US$8.3 trillion worth of infrastructure investment in Asia.
But at the same time, the cost of funding these investments is up.
Ray Ferguson, CEO of Standard Chartered Bank Singapore said: "The rules around Basel III and banks make long term financing harder for banks to provide, particularly financing beyond the sort of five-year level, because it's very difficult for us to get matching deposits.
"So Clifford can come in take the longer term tranches of some of those deals."
For a start, Clifford Capital will focus on financing the infrastructure and offshore and marine sectors with an average deal size of US$50 to US$100 million.
These are the sectors which Singapore firms have the competitive advantage.
- CNA/lp
- wong chee tat :)
Subscribe to:
Posts (Atom)