Capital needs under Basel III 'not trivial': Gupta

ASIAN banks are juggling between regulatory requirements to maintain a capital base and the need to lend to support their economies, DBS Group Holdings chief executive officer Piyush Gupta noted in the bank's 2013 annual report out yesterday.

"A one-size-fits-all regulatory agenda may therefore not be appropriate to serve the economic needs of Asian nations," he said. He called for a "reasoned exercise of national discretion and a more moderate calibration in supervisory add-ons to Basel III minimum standards".

He said that in Asia, the banking system remains a primary source of finance due to relatively underdeveloped capital markets. "The capital needs of Asian banks as they seek to meet credit demand under a Basel III regime will not be trivial, and at risk are cre-dit extensions to the lifeblood of Asian economies: SMEs, trade and infrastructure."