SINGAPORE (May 15): The three local banks have taken slightly different approaches to pro-visioning and dividends. Credit costs are allowances or provisioning for both impaired and non-impaired loans. The relationship between how these allowances are calculated and the economy, also affects risk-weighted assets (RWA). Allowances affect earnings which is part of the numerator in the common equity tier 1 (CET1) ratio, while RWA is the denominator.  

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