Basel III implementation likely to lead to significant Asian bank capital issuance

Basel III implementation, specifically the implementation of capital conservation buffers and the phase-out of non-Basel III (B3)-compliant sub-debt - is likely to lead to significant capital issuance from Asia ex-Japan (AXJ) banks in the coming years.
 
Standard Chartered Bank notes in a report on Wednesday:

• We estimate that the 49 large AXJ banks under our coverage will need up to USD 170bn of additional Tier 1 (AT1) and USD 180bn of Tier 2 (T2) capital by end-2018.
• China banks, given their size, account for more than half of these requirements. Indian, Korean and Malaysian banks also have high bank capital issuance requirements given their relatively low capitalisation levels. 
  
  
• Thailand, Singapore and Hong Kong currently have high capital levels and strong capital accretion, and are likely to rely mostly on common equity Tier 1 (CET1) to meet their total capital requirements.