Singapore orders Falcon Bank unit to shut down, fines DBS and UBS
Reuters – 45 minutes ago- aAhoo • Report Abuse
Don't forget DBS almost collapse for their aggressive behaviour and Gov use people money POSB to bail it out. Same thing might happen again and next time no more 2nd POSB.
At Ahoo, what give you the impression that DBS almost collapse and Gov use POSB to bail it out?
It was part of consolidation to make local banks bigger to prepare for the liberalisation of banking sectors to allow foreign banks to be a full-licensed bank in Singapore - so that the local banks can go overseas to compete.
In addition, POSB can tap DBS full range of wealth management to grow.
OUB is also merged with UOB to grow bigger - in order to go regional to compete.If POSB remain as saving banks - it will have limited scope to grow the deposit by lending - as it is not a full license bank.
By merging with POSB, DBS is able tap to large deposit - and as a full licensed banks - the deposit can be used in full range of services other than traditional loans - and help to grow wealth.
Also the merger make the banks grow bigger and stronger - so that it can compete effectively with offshore banks and go regional.
So when you say that DBS was bailed out by POSB is not true.Credit rating agency Moody's Investors Service says a number of differences among Singapore's three biggest lenders - DBS Bank, Oversea-Chinese Banking Corp and United Overseas Bank Ltd - could lead to their different credit ratings over time.
In a report released on Wednesday, Moody said that the Big Three - all now rated Aa1 stable, aa3 - exhibit similarly strong financial fundamentals; namely robust asset quality, good capital adequacy levels, and healthy funding and liquidity profiles. As a result, their baseline credit assessments are at the same "aa3" level - a category which is among the highest that Moody's assigns to banks globally.
But there are differences among the three banks that include factors such as: (1) their geographic mix; (2) their varying appetites for capital market activities; (3) their funding structures; and (4) challenges related to the introduction of Basel III rules.Your false facts - may have unintended consequences --- trigger a "run-on" bank or hurt us as a regional financial centre.
屁可以乱放，话不可以乱讲。
a
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Ahoo • 53 seconds ago Report Abuse
@ Ricky L, you don't know the reason of DBS/POSB merger back in asian financial crisis? DBS hit hard by the wrong bet on Thai Danu bank. It was downgraded. Many thought DBS will be gone that time, but POSB cash rich bank save it. Later, DBS tried hostile take over on OUB.. Forcing OUB CEO to defend by selling to UOB.
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Ricky L • a second agoRemove
During financial crisis - all banks are downgraded because all are inter-connected. Even the wrong bet on Thai Danu bank will not cause DBS to collapse.
The bank mergers are not due to bailing out.
The bank mergers are due to bank sector restructuring - as part of an effort to grow the banking sector.
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Ricky L • a second agoRemove
Also if control lapses are discovered, they should be rectified to ensure that our banking sectors remain reliable, trusted, robust without compromising our position as a trusted regional financial centre.
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Ricky L • a second agoRemove
POSB started off as a post office
POSB was founded in 1877 as the Post Office Savings Bank by the British colonial government. Students were encouraged to save their pocket money by buying and pasting postage stamps on POSB cards. Once the card was filled with stamps, they could present it to the post office to credit their POSB accounts.
POSB then became be a statutory board
The Post Office Savings Bank was originally made a statutory board under the Ministry of Communications. There was also the Post Office Savings Bank Act of 1971 which was passed to govern the structure and operational efficiency of the bank. In 1974, POSBank was transferred to become part of the Ministry of Finance. Being under the government, POSB used to be supported by taxes.
DBS was always a commercial bank
DBS was set up by the Government of Singapore in June 1968 to take over the industrial financing activities from the Economic Development Board. However, it was always a commercial bank so it was supported by its profits.
A merger was later encouraged
POSB was acquired by DBS, as the Government sought to give DBS enough muscle to become a regional financial powerhouse. POSB was fully acquired by DBS Bank on 16 November 1998 for S$1.6 billion. POSB ceased to exist as a statutory board under the Ministry of Finance. The integration of both banks allowed customers of either bank to share the facilities. For example, DBS Bank depositors may use the Cash Deposit Machine installed islandwide in POSBank branches and vice versa.
The success of the merger did not come immediately
Despite the convenience both POSB and DBS users enjoy in recent years, the merger was not a hit among Singaporeans when it first started. After the conversion to a full commercial bank, home-loans borrowers had to wave goodbye to the cheap mortgages they had been enjoying. A government tax change meant that POSB was no longer the only bank with tax exemptions on interest paid to savers. There was also an ongoing shutdown of POSB branches and ATMs. People were worried that the popular POSB was going down to favour the merger. Both banks also had very different cultures. DBS actually suffered a loss from the merger.
However, the merger proved to be going well since then. Not only are the 2 banks popular among the citizens, they are also both easily accessible to everyone now. ATMs and bank branches can be easily found in many places and either bank’s customer does not have to worry when they can’t find an ATM because they can just look for the other bank’s.
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Ricky L • a second agoRemove
DBS Bank Ltd is a Singaporean multinational banking and financial services
corporation headquartered in Marina Bay, Singapore. The company was known as The Development Bank of Singapore Limited, before the present name was adopted in July 2003 to reflect its changing role as a regional bank.[4]
The bank was set up by the Government of Singapore in July 1968 to take over the industrial financing activities from the Economic Development Board. Today, its branches numbering more than 100 can be found island-wide. DBS Bank is the largest bank in South East Asia by assets and among the larger banks in Asia. It has market-dominant positions in consumer banking, treasury and markets, asset management, securities brokerage, equity and debt fund-raising in Singapore and Hong Kong. The bank's strong capital position, as well as "AA-" and "Aa1" credit ratings that are among the highest in the Asia-Pacific region, earned it Global Finance's "Safest Bank in Asia" accolade for six consecutive years, from 2009 to 2014.[5] With operations in 17 markets, the bank has a regional network spanning more than 250 branches and over 1,100 ATMs across 50 cities.[5]
1 History
1.1 Acquisition of POSB Bank
2 Shareholders
3 International operations
3.1 China
3.1.1 Hong Kong
3.2 Taiwan
3.3 India
3.4 Indonesia
4 The Islamic Bank of Asia
5 DBS iB Secure Device and Internet banking
6 Mobile banking
7 Awards
8 References
History[edit]
Established on July 16, 1968 by the Government of Singapore to take over the industrial financing activities from the Economic Development Board,[6] the bank's main purpose was to provide loans and financial aid to the manufacturing and processing industries and to help establish and upgrade existing industries in Singapore. In 1960, the Singapore government invited a United Nations (UN) industrial survey mission to assess the economical situation in Singapore and to come up with a industrialization programme for the city.[7] The proposal included setting up a development bank, together with a economic body to attract foreign investments and provide financing and managing the industrial estates. The bank was incorporated in July 1968 and began operations in September of the same year.[6]
Acquisition of POSB Bank[edit]
Main article: POSB Bank
Formerly known as Post Office Savings Bank, it was established on 1 January 1877 in the General Post Office Building, in Raffles Place by the British Colonial Government in Singapore.[8]
By 1976, POSB had one million depositors, while deposits crossed the S$1 billion mark. The bank was then renamed POSB Bank in 1990, before being acquired by DBS Bank for S$1.6 billion, giving it a dominant market share with over four million customers. POSB Bank still operates one of the highest number of bank branches in Singapore, especially in the suburban neighbourhoods, and operates the highest number of ATM outlets throughout Singapore. The integration of both banks allowed customers of either bank to share the facilities; DBS Bank depositors may use the Cash Deposit Machine installed islandwide in POSBank branches, likewise for POSB Bank depositors.
International operations[edit]
DBS corporate headquarters at Marina Bay Financial Centre Tower 3 in Singapore.
DBS has branches and offices in China, Dubai, Hong Kong, India, Indonesia, Japan, South Korea, Malaysia, Myanmar, Philippines, Taiwan, Thailand, Vietnam, United Kingdom and United States.To repeat and reinforced :-
屁可以乱放，话不可以乱讲。- ** • Report Abuse
at least Ricky L must agree that posb staying as a saving bank is fully guaranteed by the government, now all our values is worth only S$50k Sure Die Insurance Connection.
When you say fully guaranteed by the Government, it means using taxpayer money.
DBS is a GLC - operating in commercial term, subject to strict MAS reserve ratio requiremtn and has been subjected to severe bank stress test.
Moreover, local banks are the pillars of the Economy - that help to finance business, trade, commercial activities as well as consumer savings. The operation of banks in Singapore are subjected to severe stress tests.
With stringent risk aversive guidelines governing the operation of the bank, is there a need to be fearful that the bank will fail?During the Asian Financial Crisis - where the whole SE Asian are under severe pressure - due to currency speculation and manipulation ---- many SE Asian Countries currency are severely beaten and banks come under severe stress.
Singapore banks have been able to withstand the Financial shock and the Government stand firm behind to provide support (remember when for the 1st time - the Government has applied to the President to make use of reserve to defend the currency and to prop up the banks - to defend against the Financial shock).
Since then, Singapore banks have grown stronger with more safeguard in place.
Banks is the pillar of the Economy - and cannot afford to fail - and will be under close scrutiny to ensure banks are prudent in their business operation.
Even in overseas bank, American banks come under severe stress due to the sub-prime crisis --- and the US Government did step in to support for eg. Bank of America, Citibank etc.
Thus Banking confidence must not be trampled on. Spreading rumour that a bank nearly collapse is trampling on the banking confidence --- which can trigger unintended consequences of "run-on" bank --- which is a rumour induced crisis.If people are worried about their savings and want to be fully guarantee by the Government - then put the savings in CPF, Singapore Saving Bonds.
They are fully guaranteed by the Government --- and at a higher interest rate than what is offered by the commercial bank.
CPF offer 3.5, 4, 5, 6% interest rate --- very high.
Singapore Saving Bonds offer 1.79% (it fall from the high of 2% or more).
Commercial banks offer lower interest rate as compared to the above.But note that there are conditions in putting your savings in CPF and Singapore Saving Bonds.(1) CPF - cannot withdraw unless you reached 55 years old. It has a cap to save in CPF. For 2015 - you can only save up to $37,740.(2) Singapore Saving Bonds - you can save up to $100,000 - with 2 maximum tranche of $50,000. Also you must save up to 10 years in order to earn the full interest.For the amount beyond this, you still have to save with the commercial banks.
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Ricky L • a second agoRemove
And another thing, if POSB stay as Statutory Board, how can POSB grow with a depositor base of 5 million people?
Its grow will plateau at 5 million people and POSB cannot grow.
Only when POSB merge with DBS as commercial bank - can venture overseas and grow its wealth. There are 6 billion people worldwide.
Else POSB will have to be home-grounded and capital cannot grow.
Doesn't make sense right?
M
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Mary Tan Ah Lian • 3 hours ago Report Abuse
Ricky L writes with so much details and such proficiency and as if he is an "insider".
T
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TheRighteousHand • 58 minutes ago Report Abuse
"Well known for extremely strict internal processes and policies"? Really? What do you know? I know more about DBS than anyone here, and I beg to differ.
T
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TheRighteousHand • 2 minutes 12 seconds ago Report Abuse
@Ricky
Stop writing rubbish. POSB was not started by the British. POSB and Post Office are 2 different entities totally. And DBS is not a totally a commercial bank. DBS was set up as a development bank to facilitate support of government economic policies by lending to industries which had been granted government grants, etc. The money for such purposes come from ministry of finance tranches. In later years the commercial arm of DBS took on a more prominent role although it remains as both a commercial and development bank. In the early years, needless to say, its development arm lost heavily because of pioneer industries went bust or were unable to survive, etc.
So, please stop writing nonsense unless you have detailed inside knowledge.
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Ricky L • a second agoRemove
Having insights does not mean one need to be an insider.
An insider may not have insights.
Insider is different from insights.
Having insights may not be an insider.
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