FINANCIAL INSIGHTS: AT-1

AT-1 issuance market, Singapore banks remain strong and stable

MAS, being the central bank, continued to remind financial institutions that investors shall and always be informed of their offerings, especially AT-1bonds. Further, pressing on the fact that disclosures, features and risks should be kept clear and concise.

Issuance in the future

Natixis’ Ng said Singapore banks issuing AT-1 bonds in the regulatory environment are all about “confidence and predictability.”

“The monetary and financial regulations imposed by MAS are already one of the most stringent in the world to provide for a stable financial environment, and the stability could benefit local banks when competing with other banks in the market,” he said.

Despite numerous banks putting a halt to their AT-1 issuances in the aftermath off the Credit Suisse incident, some are now slowly getting back in the grind.

“There is no new issuance from Singapore after the UOB’s deal in January 2023. In the medium run, Singaporean banks are likely continuing their issuance once sentiment improves,” Ng said.

Such an outlook suggests that in the face of uncertainties in the AT-1 issuance market, Singapore banks remain strong and stable. And that’s because their resilience and adaptability during global banking crises is built-in, proving once again why they stand tall amidst the winds of change.