Higher Basel III pricing deters Asian banks from issuing new Tier II capital


The introduction this year of new Basel III pricing for Tier II capital has made Asian banks wary about testing the market and, combined with a flurry of issuance at the end of 2012, has led to abnormally low capital issuance to date this year.

From January 1, old-style Basel II instruments must be phased out by 10% per year. With uncertainty about the pricing of the new instruments, many banks are taking a cautious approach, according to Pramod Shenoi, director in capital markets at Standard

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