Singapore banks do not share similar risks leading to Credit Suisse AT1 write-off: CGS-CIMB
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Vivienne Tay
THE conversion of Credit Suisse’s Additional Tier 1 (AT1) bonds into equity was likely “idiosyncratic” in nature, and does not reflect the outcome of other AT1 securities in the system – which include those issued by Singapore banks, CGS-CIMB said on Tuesday (Mar 21).
The research team noted in a report that Singapore banks do not share the same risks which led to the event. This is due to strong corporate governance and risk management, resulting in a robust market and consumer confidence.
“We highlight that Credit Suisse underwent a crisis of confidence, which then led to the takeover,” said CGS-CIMB analysts Andrea Choong and Lim Siew Khee.
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