Standard Chartered is set to infuse more than $2.5bn in common equity tier 1 (CET1) capital into its Singapore unit.
The infusion will bolster the bank’s capital position by nearly three times, The Straits Times reported.
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It is expected to be completed by 13 May this year, subject to legal and regulatory approvals.
Once completed, the local unit Standard Chartered Bank (Singapore) will start operating commercial, corporate and private banking businesses.
Standard Chartered Bank (Singapore) already operates the retail banking unit in the country.
The step, which moves all operations under one entity, is expected to streamline operational efficiency.
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By GlobalDataAdditionally, the step will reduce complexities and help the company to achieving higher scale and flexibility.
“The consolidated entity will be a well-capitalised Singapore-regulated bank with strong liquidity”, the publication quoted Standard Chartered as saying.
The move was first announced in February last year.
Standard Chartered Bank (Singapore) was incorporated as a subsidiary in 2013. It saw the transfer of its retail and business banking, and a part of its commercial banking business to the Singapore unit.
Last month, Standard Chartered unveiled plans to boost its return on equity to more than 10% by 2021.
As a part of the plan, the lender will restructure its operations in four under-performing markets. They are India, Indonesia, Korea and the UAE.
Earlier, it announced to launch digital retail banks in Uganda, Tanzania, Ghana and Kenya.
