High-growth markets face bank capital setback

Banks from emerging economies are likely to experience hurdles when it comes to raising bank capital internationally, S&P says, but syndicate bankers think otherwise.

While most rated Asia-Pacific banks will be able to meet Basel III capital requirements within the stipulated time frames without reducing assets, there are some that will struggle.

According to Standard Poor’s, banks operating in high-growth systems such as China and India will likely face challenges in replenishing capital.

Domestically, the depth and size of these countries’ investor base are lagging behind those in developed systems and internationally, they have a limited track record of cross-border issuance while the liquidity of securities is low, the rating agency said in a report released on Wednesday.

“Banks in high-growth countries such as India and China are...

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