Market liquidity has been drained by regulations, says DBS chief

Volcker, Basel III and Dodd-Frank have combined to reduce liquidity

Piyush Gupta: new regulations sapping liquidity

A host of new regulatory requirements governing financial institutions' trading activities has significantly restricted banks' capacity to absorb risk and provide liquidity, according to Piyush Gupta, chief executive officer at Singaporean lender, DBS.

Speaking at the 11th Asia Risk Congress on September 9 in Singapore, Gupta pointed to Basel III capital requirements, Dodd-Frank and the Volker rule as all combining to negatively impact market liquidity.

"It is quite clear that the new capital