Are Asian banks ready for organizational reshuffling to keep up with regulation shifts?

Singapore banks are lauded for being very ready.

Asian Banking and Finance sought the experts' opinion on Asian banks' readiness when it comes to regulation changes.

ABF: How ready are Asian banks for a possible organizational restructuring to ensure that resolution plans can be executed to comply with regulation changes?

Darryl Ye, Lead Analyst at East & Partners Asia: No comments for overall banks in Asia. Singapore banks are indeed very ready. In the latest regulation by MAS regarding Liquidity coverage ratio requirements announced in June earlier this year, requiring banks to hold sufficient ‘high quality’ liquid assets to withstand a 30 day crisis by Jan 2015, it was reported that all Singapore banks were already in compliance with the new requirements for local currency.

Jeffrey Tjoeng, National Emerging Business Head, OCBC NISP: Since the crisis of 1998 and 2008, Indonesian banking architecture is fairly robust to follow regulatory changes. The difference is the speed of adopting all necessary regulatory changes among different banks. Basel 3 is one example. Banks that follow regulatory changes may experience a loss of market share when others that are not following the regulation may chip away at the former's businesses- however, over time, banks that adopt the regulatory changes earlier will reap the benefit of being more solid & secure.

Liew Nam Soon, Asia-Pacific and Singapore Financial Services Advisory Leader at Ernst & Young: This differs by country but it is probably fair to say that certainly in more mature markets that are used to strong regulations, such as Singapore, Malaysia, Indonesia, Thailand in Southeast Asia, the leading banks are geared up for the changes.