Push for lower Tier II capital fund raising prior to window closing

Senior bankers are advising banks in the Asia-Pacific region to issue old-style Tier II capital to take advantage of the window before the January 1, 2013 deadline, when new Basel III rules will impose more onerous capital structures on banks.

Already this year, Woori Bank, United Overseas Bank (UOB) and Macquarie Bank have issued lower Tier II instruments, and bankers foresee further issuance during the next 18 months as banks seek to make the most of transitional provisions issued by the Basel