Phillip Securities research analyst Tay Wee Kuang toldthat current macroeconomic conditions may be more favourable for banks to undertake debt issuance to strengthen their capital position.
Singapore's banking trio have built up healthy capital buffers following calls from the regulator to limit dividend payouts this year. S&P Global Ratings analyst Ivan Tan told BT that Singapore and Malaysian banks are more likely to increase provision coverage for NPLs, particularly for borrowers impacted by the pandemic.
But Phillip Securities' Mr Tay thinks banks will avoid rights issues if they can as they are"generally scorned upon" by investors due to their dilutive nature, especially for minority stakeholders.
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