Cash calls by banks to slow down in 2016

RAM Ratings co-head of financial institution ratings Wong Yin Ching(pic) expected equity raising exercises to taper off given that most of the larger banking groups had either completed or are already in the middle of the capital-raising exercise.

PETALING JAYA: The momentum for cash calls by banks are expected to slow down by next year after a flurry of capital raising exercises over the past three years.

Although the move to shore up capital would depend on various factors like the strength of the economy, growth and expansion plans of banking groups, analysts felt the pace of capital raising would be slower next year as banks have sufficient capital buffers under the Basel III ruling.