DBS must explain Swiber debacle

In the wake of the judicial management of energy services firm Swiber Holdings, DBS Bank owes depositors an explanation as to why it reportedly continued to lend money to the company weeks before it filed for liquidation ("High Court appoints interim judicial manager for Swiber"; Wednesday, and "Moody's flags 3 local banks' exposure / JPMorgan analysts cut rating on DBS"; yesterday).

Surely, red flags should have gone up.

Thousands of depositors are stunned at the $700 million exposure and they deserve an explanation.

DBS cannot merely say that it was totally unexpected and still within the bank's loss provision.

Christopher Tang Wai Leng

A version of this article appeared in the print edition of The Straits Times on August 06, 2016, with the headline 'DBS must explain Swiber debacle'. Print Edition | Subscribe