Development Bank of Singapore
The Development Bank of Singapore Ltd, commonly known as DBS, was founded on 16 July 1968. The institution was formed to shoulder the industrial financing duties previously managed by the Economic Development Board (EDB). DBS has grown significantly since its inception, becoming Southeast Asia's largest bank by branches, and a prominent financial player in Asia.
The idea for a development bank in Singapore was sparked by a 1960s United Nations Industrial Survey Mission led by Albert Winsemius. The mission identified a pressing need for a dedicated body to lead Singapore’s burgeoning industrialization efforts. By 1961, the EDB was established, marking a pivotal moment in the nation's economic development. The growth in the EDB’s financial commitments, which swelled from S$7.4 million in 1962 to S$73.9 million by 1967, underlined the need for a more specialized institution. Consequently, the government initiated a series of strategic reforms, culminating in the establishment of DBS.
DBS was incorporated on 16 July 1968 and started operations on 1 September of the same year. Its primary role was to provide financial assistance to manufacturing industries, aiming to catalyze the establishment and enhancement of industrial operations. Furthermore, DBS supported significant urban development and tourism projects, broadening its impact beyond mere financial assistance.
From the beginning, DBS was envisioned as a collaborative endeavor involving both public and private sectors. The bank was set up as a public company under the Companies Act, allowing various stakeholders, including the public, commercial banks, and other private entities, to own shares. This structure was pivotal in ensuring a wide base of investment and support, enabling DBS to have robust financial backing.
One of DBS's significant early initiatives was taking over EDB’s loan portfolio, worth S$44.6 million in 1968, which was officially transferred following the passage of the Economic Development Board (Transfer of Assets) Bill. This move was significant in providing DBS with a solid foundation from which to expand its operations.
In the ensuing years, DBS embarked on a rapid expansion of both its financial services and its geographical footprint. The bank extended its services by opening its first branch in Singapore at Jurong in 1972, which coincided with the region's industrial boom. Internationally, DBS marked its presence by inaugurating its first overseas branch in Tokyo, Japan, in 1977, signaling its growing influence in global banking.
DBS also ventured into real estate development; notable projects included the iconic DBS Building on Shenton Way and other significant ventures like Plaza Singapura and Raffles City. These developments not only provided substantial returns but also contributed to the shaping of Singapore’s urban landscape.
By the end of the 20th century, DBS had made several strategic acquisitions to bolster its market presence, including the high-profile absorption of POSB Bank in 1998. This acquisition allowed DBS to significantly broaden its customer base and deepen its market penetration in Singapore.
Today, DBS stands as a testament to Singapore’s visionary economic strategies, which have successfully transformed a nascent banking institution into a leading global financial powerhouse. Its journey from a national development bank to a key player in international banking underscores the dynamic evolution of Singapore’s financial services sector.