DBS: Asian backlash over regulatory fragmentation

The crisis did not start in Asia, but Asian countries have been among the first to implement the resulting capital and liquidity regime – while the US and Europe have yet to move. The result is an unlevel playing field, says Elbert Pattijn, chief risk officer at DBS in Singapore. By Nick Sawyer

A decision by European legislators earlier this year to ignore a Basel III capital charge on credit valuation adjustment (CVA) for some trades was lauded by the continent’s banks as a victory for common sense. Asia’s financial institutions saw it a little differently. Hong Kong, Japan and Singapore were among the 11 territories to begin their roll-out of Basel III on schedule at the start of 2013. The US and European Union (EU) were not – and there is still no clear timetable on when they will