Five Asian Bank Stocks To Consider

Asian banks are relatively in a better position than European and US banks. Having stayed strong during the credit crisis, Asian banks continue to maintain high Tier 1 Capital Ratios and follow their conservative business models. In addition, state regulators have played a key role in strengthening the banking systems by formulating sound policies and implementing stricter standards on lending. For example, the Monetary Authority of Singapore requires domestic banks to hold a minimum Tier 1 capital adequacy ratio of 6% which is higher current Basel II standards. By 2015 the Central Bank will raise the minimum Tier 1 capital adequacy ratio to 8% which is also higher than the Basel III requirements.

Investors looking to add some bank stocks from Asian countries can consider the following five OTC-traded sponsored ADRs having over 5% dividend yields:

1.Bank:Hang Seng Bank Ltd (HSNGY)
Current Dividend Yield: 5.52%
Country: Hong Kong

2.Bank:Malayan Banking BHD (MLYBY)
Current Dividend Yield: 6.56%
Country: Malaysia

3.Bank:DBS Group Holdings Ltd (DBSDY)
Current Dividend Yield: 8.25%
Country: Singapore

4.Bank:United Overseas Bank Ltd (UOVEY)
Current Dividend Yield: 5.79%
Country: Singapore

5.Bank:BOC Hong Kong (Holdings) Ltd (BHKLY)
Current Dividend Yield: 6.41%
Country: Hong Kong

Note: Dividend yields noted above are as of market close Jan 4, 2012.

Disclosure: No Positions

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