Banking Blues: It’s getting tougher says DBS Chairman

It's tough times ahead for bankers as the banking industry reels from the onslaught of the global recession due to reckless lendings. Capital requirements for banks would also go up and returns would come down, DBS Bank chairman Koh Boon Hwee told participants yesterday at the ‘Perspectives of Leaders' discussion at the two-day Singapore Human Capital Summit conference.However, DBS believes that keeping its eye fixed on Asia for the next 5 years is its life line to remain steady through the turbulent times.

Koh did admit however, that DBS would have to go through many changes because of new regulatory requirements for banks, and after assuring the public of its financial ability to face oncoming changes, began to reveal its ambitions for expansion.

Says Mr Koh: "We will continue to grow our franchise. If there are opportunities for inorganic growth, we will always look for it." In the next three years, DBS plans to more than double its Indonesian branch network over the next three years – as well as be on the lookout for acquisition opportunities in its expansion. It hopes to have about 100 branches in Indonesia, up from 40 currently. However, he sums up their aspirations on a prudent note. "It doesn't mean we will chase it - I think banks get into a lot of trouble when they overpay," Mr Koh said.