DBS completes US$1 billion significant risk transfer deal, a first for Singapore bank
DBS Bank has executed a US$1 billion significant risk transfer (SRT) deal, the first of its kind for a Singaporean bank. This transaction allows the bank to offload credit risk on corporate loans to investors, freeing up regulatory capital for future lending.
Why it matters
This move signals a shift in how Asian banks manage capital efficiency and risk, potentially setting a trend for the regional financial sector.
It gives investors exposure to a corporate loan portfolio, while freeing up regulatory capital for the lender
The report is a factual summary of a financial transaction and its regulatory implications.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in