DBS Bank comfortable with Korean exposure

DBS Bank comfortable with Korean exposure

SINGAPORE (Reuters): DBS Bank, one of Singapore's largest, is comfortable with its loan exposure in South Korea and Indonesia, bank deputy president Tan Soo Nan said yesterday.

Speaking to reporters after the launch of a new private banking product, Tan said: "We are very comfortable with our exposure there."

Commenting on loan figures supplied by IFR Securities Data on the bank's syndicated loan activities in the Korean and Indonesian markets, Tan said: "Looking at the IFR figures in relation to our exposure to Indonesia and Korea, I can say it is significantly lower than the figures in IFR."

An IFR official said their data showed DBS Bank and its units were involved in signed deals worth about US$6 billion in Indonesia and $4.3 billion in Korea between 1995-1997.

She said the figures reflected international deals based on the total issued amounts of loans signed but do not indicate DBS's level of participation or proportion of these loans.

Tan declined to give further details on the bank's actual exposure in both countries.

He said there were no plans by the bank to make extra provisions for its regional exposure but added that it may sometimes make 'discretionary provisions' if it thought there might be some problems.

DBS Bank has a bank license in Korea and also a presence in Indonesia through its stake in PT Mitsubishi Buana Bank.

Tan said the percentage of regional loans by the bank was 'very small' against its total loans portfolio as it largely a domestic bank.

As at the end of June 30 1997, the group had total loans of S$59.5 billion.