DBS Group's Hong Kong unit is 'in a strong financial and capital position' with good asset quality, said the bank in an e-mailed statement on Thursday.
DBS's statement came a day after Bank of East Asia, Hong Kong's third-largest lender, asked police to investigate 'malicious rumours' that sparked a slump in its stock and lines at branches across the city, said a Bloomberg news report.
BEA extended opening hours after phone text messages questioning the health of the bank triggered an 11 percent drop in the shares.
The 90-year-old lender said its 'exposure' to bankrupt Lehman Brothers and American International Group, taken over by the US government last week, is about US$61 million (S$87 million), less than 0.2 per cent of assets.
'DBS Group's exposure to Lehman is insignificant and DBS Bank (Hong Kong)'s balance sheet is strong,' the Singapore-based bank said. 'We would like to assure customers that their deposits in DBS are safe.'
DBS said the capital adequacy ratio at its Hong Kong unit stands at 12.6 per cent, 'well above' the requirement of the city's central bank.
In Singapore, where the bank is based, the ratio is 13.8 per cent, also higher than local regulatory requirement, it said.
