Further opportunities for banks in lending space amid stricter capital requirements, private credit growth

WHILE banks around the world are cutting back on private corporate lending amid stricter capital requirements and the growth of private credit, market watchers expect that the lenders can evolve to create new opportunities in the lending space.

Singapore banks, in particular, remain compelling as an investment class given that their strong fundamentals and capital position remain unchanged.

Banks have opportunities to step into where regulation has made them more capital-intensive, said Michelle Russell-Dowe, global head of securitised products at Schroders Capital.

Under the Basel III framework – an international regulatory framework that aims to…