Video Infoblog - The Rise Of DBS: Untold Story Of Insane Merger With POSB

Transcript

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Against All Odds tiny Singapore

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transformed itself into a Global

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Financial Titan at the heart of this

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incredible rise is a bank that grew

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alongside the nation from humble

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beginnings as a government-backed lender

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it blossomed into Southeast Asia's

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Financial Powerhouse a multiple Award

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winner including the coveted title of

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world's best bank dbs's Journey from a

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small island Bank to a global Behemoth

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is nothing short of extraordinary but

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how did a local bank from a small island

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nation conquer to the world's financial

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markets join us as we delve into the

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bank's history unraveling the secrets

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behind its success be sure to watch till

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the end as we reveal the truth behind

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the controversial merger with the

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People's Bank that shaped its Destiny

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but first let's rewind to the 1960s back

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then Singapore was a fledgling citystate

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grappling with rapid growth to fuel its

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Industrial Revolution the economic

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development board also known as EDB was

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established in

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1961 however the Relentless Financial

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demands of a burgeoning economy

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exacerbated by the challenges faced

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after gaining independence in 1965 soon

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strained the edb's resources it was

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clear a solution was needed in 1968 the

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government unveiled its plan a

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Development Bank to handle industrial

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financing freeing up the EDB to focus on

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attracting Investments and so the

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Development Bank of Singapore later

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renamed DB s bank was born to Kickstart

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this new Venture the government tapped

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into the edb's own talent pool the

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bank's original team was made up of

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seasoned employees from EDB leading the

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charge was hon suisen edb's chairman who

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stepped into the role of dbs's inaugural

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president and chairman but DBS didn't do

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it alone recognizing the need for Global

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expertise the Singapore government

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Enlisted the help of German Financial

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experts to share their banking knowhow

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with a mix of local talent and

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international wisdom DBS was poised to

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become a Cornerstone of Singapore's

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economic future initially DBS was tasked

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with a simple goal to fund Singapore's

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Industries with a vision to support new

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Industries and upgrade existing ones DBS

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poured its resources into manufacturing

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processing and even urban renewal

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projects but DBS had bigger Ambitions it

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wanted to be more than just a

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Development Bank so in 1969 it ventured

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into Commercial Banking opening its

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doors to the public it was a bold move a

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step into the competitive world of

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Finance the 1970s marked a pivotal

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decade DBS was hungry and had Ambitions

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that extend beyond mere financing it

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ventured into real estate constructing

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iconic landmarks like the DBS building

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which at the time was Singapore's

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tallest Plaza Singapura pandon Valley

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and the Majestic Raffles City followed

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transforming the city's Skyline and

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lifestyle not content content with

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dominating the local scene DBS broke new

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ground in the financial world it was the

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first bank in Singapore to issue Asian

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dollar bonds a bold move that catapulted

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the city state onto the Global Financial

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map with a growing appetite for

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expansion DBS planted its roots deeper

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in Singapore opening its first branch in

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durong with a Keen Eye on the global

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stage DBS next set its sights on Japan

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establishing its first overseas branch

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in Tokyo this was the first step in a

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strategic expansion across Asia laying

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the foundation for the bank's Regional

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dominance but the real game Cher came in

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the 9s DBS made a daring yet

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controversial move acquiring posb a

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major Bank in Singapore owned by the

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government but to fully grasp the

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implications of this merger and the

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controversies that came with it we must

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first delve into pb's history founded

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during British colonial rule the post

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office Savings Bank or posb in short

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started life in

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1877 as a simple service for the less

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fortunate it was a place where ordinary

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folks could safely tuck away their

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hard-earned pennies Singapore's

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Independence in 1965 marked a turning

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point for posb the fledgling nation was

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hungry for growth and the government

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realized that domestic savings were key

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to fueling the economy posb was tasked

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with a Monumental challenge to transform

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from a sleepy Savings Bank into a

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financial Powerhouse the transformation

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was nothing short of miraculous posb

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rolled out a series of initiatives that

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made saving easy and rewarding longer

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banking hours higher withdrawal limits

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tax exemptions on interest and even a

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savings competition for schools were

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part of the mix these measures combined

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with clever marketing breathed new life

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into the bank in 1972 posb was given a

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major boost when it became a statutory

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board under the government this gave it

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the freedom to innovate and expand its

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services soon p OSB was offering

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everything from home loans to

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computerized banking the bank was no

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longer just a place to save it was a

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partner in people's lives before long

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posb had cemented its status as the

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People's Bank it was more than just a

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financial institution it was a symbol of

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Singapore's progress at its core however

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posb remained steadfast in its

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commitment to providing accessible and

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affordable banking to everyone so why

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did DBS need posb the late 199 were a

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turbulent time for the banking industry

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the Asian financial crisis was raging

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and foreign Banks were musling their way

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into the Singapore Market these

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Financial Giants boasted Superior

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technology expertise and customer

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service local banks like DBS were

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feeling the heat it was clear that to

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survive let alone Thrive Singapore's

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Banks needed to bulk up the government

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and financial Regulators agreed they

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urged local banks to merge and create

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larger stronger institutions

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capable of battling it out with global

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competitors DBS recognized that to

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become a regional banking Powerhouse it

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needed a boost and this is where posb

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came in with its vast customer base and

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substantial deposits posb was the

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perfect match to help DBS grow in size

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and strength it was a strategic move a

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merger of necessity to ensure DBS could

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not only weather future Financial storms

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but also emerge as a dominant player on

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the regional stage and so in a power

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move that would reshape Singapore's

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banking landscape DBS shelled out a

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hefty $1.6 billion in 1998 to acquire

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the government-owned posb and its

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subsidiaries so what was the fuss about

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the merger singaporeans were deeply

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concerned when DBS announced its

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intention to acquire posb posb was more

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than just a bank it was a beloved

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institution synonymous with affordable

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customer focused banking DBS on the

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other hand was often perceived as a

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profit-driven corporate giant the fear

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was that this merger would transform The

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Friendly Neighborhood Bank into a profit

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hungry entity leaving ordinary

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singaporeans with fewer affordable

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banking options recognizing The public's

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anxiety DBS made a strategic decision

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instead of absorbing posb into its brand

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it opted to preserve pb's identity and

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expand its offerings this move was a

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win-win it reassured customers that

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their beloved bank would remain

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accessible while also providing poosb

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customers with a wider range of

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financial services but that's not the

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only contentious issue you see the sale

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of posb to DBS Bank was far from a

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simple business deal it ignited a fierce

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debate about the powers of the Singapore

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presidency as a statutory board posb was

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essentially a government entity

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entrusted with managing public savings

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its reserves by extension were part of

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the nation's wealth the president's

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constitutional Duty was to safeguard

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these reserves however the government's

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handling of the posb sale raised

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eyebrows former president on Tang chiong

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shockingly revealed that the public was

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informed of the sale through the

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newspapers before he was even notified

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even worse the government planned to

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bypass the president entirely by

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submitting a bill through Parliament to

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dissolve posb this blatant dis regard

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for the president's constitutional Duty

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forced his office to step in and remind

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the government of its constitutional

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obligations despite this constitutional

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Clash the acquisition proceeded

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solidifying dbs's dominance in Southeast

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Asia and Beyond Today the two banks are

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so intertwined that they're practically

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Inseparable the merger with posb marked

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a pivotal moment setting the stage for

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its meteoric rise the 2008 financial

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crisis created a golden opportunity for

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Asian Banks as wealth fled Western

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markets in search for safer Havens

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however few were equipped to handle the

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influx of new clients especially in the

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complex world of private banking DBS

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seized this moment strategically

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acquiring key assets that strengthened

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its wealth management capabilities to

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become a top five Regional player in

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wealth management but the bank's most

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dramatic transformation was yet to come

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under divisionary CEO push Gupta DBS

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underwent a radical digital overhaul

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branches were replaced by apps and a

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Relentless focus on customer

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satisfaction drove massive investments

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in technology with billions poured into

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Ai and cloud computing the bank launched

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Innovative digital platforms like Paya

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and explored the potential of blockchain

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the results were astonishing DBS morphed

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from a Traditional Bank into a global

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digital leader boasting skyrocketing

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profits and a market value exceeding

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$100 billion today DBS is renowned for

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its digital prowess and has consistently

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been named world's best digital bank and

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world's best bank however DBS has faced

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significant challenges in recent years a

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series of major it failures had left

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customers frustrated and unable to

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access their money these incidents have

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not only damaged the bank's reputation

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but also resulted in serious penalties

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from Financial Regulators even even CEO

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peush Gupta could not Escape personal

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consequences for these setbacks want to

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know what happened to him and how these

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incidents impacted his legacy watch this

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video to find out more