Talk of Basel IV in ASEAN markets – particularly as it relates to Singapore banks –has invariably been accompanied by a sense of foreboding. After all, higherregulatory capital requirements have been the bane of banks in recent years, andhere is the spectre of a new ‘higher-numbered’ Basel with yet tougherrequirements. On the surface, the implications are two-fold. First, banks may haveto raise more capital. Second, they may become more hesitant to lend. The latterhas gotten investors worried – fewer loans mean fewer mortgages and fewerproperty sales – but the experience of other markets suggests they have little tofear. In our view, the risk of banks scaling back mortgage lending in Singapore islow and, as such, Basel IV alone is unlikely to bring about a slowdown in the islandstate’s property market. We have Buy ratings on DBS (DBS SP, Buy, TP:SGD20.00), UOB (UOB SP, Buy, TP: SGD25.20), City Developments (CIT SP,Buy, TP: SGD11.65), and Capitaland (CAPL SP, Buy, TP: SGD3.90).