CIMB… dated July 2012

CIMB Group Singapore is still keen to have a Qualifying Full Bank (QFB) licence in Singapore despite the republic requiring foreign banks with large deposits to incorporate their retail operations locally.

Late June 2012, the Monetary Authority of Singapore (MAS) said foreign banks that fell under the QFB programme must also meet the republic’s stringent capital requirements.

 

CIMB was not deterred by the new rules. Instead CIMB Group Singapore was encouraged by MAS’ announcement that it would continue to consider awarding new QFBs to foreign banks operating in Singapore .

 

Such licences were awarded by MAS under the free trade agreement negotiations.

 

QFBs enjoy greater privileges, such as being able to open several branches in the city-state and accept retail deposits. MAS is considering granting foreign banks that incorporate locally and are sufficiently localised to open an additional 25 places of business, of which up to 10 may be branches.

 

CIMB Group Singapore currently has a two-branch banking operation that was once part of Malaysia ’s Southern Bank, which it acquired in 2006.

 

Without the QFB, CIMB expansion in the city state is limited.

 

CIMB also has stockbroking and corporate-finance businesses in Singapore when it acquired GK Goh in 2005.

 

CIMB Bank Singapore hopes to account for 10 per cent of the group’s earnings by 2016, with Indonesia and Malaysia contributing 35 per cent each, Thailand 10 per cent and the final 10 per cent from the businesses in other markets.