Scrutiny may go beyond 'retail' foreign banks

[SINGAPORE] The latest move by Singapore to regulate and supervise a list of "too big to fail" banks may not just target foreign lenders with a retail presence - an initial assumption bounced around by the banking circle.

Instead, the list of foreign banks should reflect their systemic importance here, and any vulnerabilities from relying on short-term funding, even as banks operate in a strictly regulated system.

Last month, it was announced that Singapore, like Hong Kong, would identify "domestic systemically important banks" that need to meet Singapore's prescribed liquidity coverage ratio (LCR) - ensuring these banks hold enough high-quality liquid assets to cover short-term market shocks.