Singapore banks' overseas assets grew at a 15% CAGR between 2009 and 2012

It's now 37% of total Singapore bank assets.

According to Moody's, the maturity of the Singapore market has pushed local banks to seek growth opportunities elsewhere in the region, through both organic and inorganic means. DBS’ proposed acquisition of  Indonesia’s Bank Danamon (D/Baa3/P-3 positive) is a case in point.

Here's more from Moody's:

While geographical diversification has positive credit benefits, it also brings the risks of operating in marketswith greater country risk than Singapore (Aaa Stable)

Assets outside Singapore grew at a 15% CAGR between 2009 and 2012, relative to 11% for Singapore assets during the same time period. As of 2012, assets outside Singapore represented 37% of total Singapore bank assets.

A substantial portion of these assets are in markets where Singapore banks have considerable operating histories, such as Malaysia.

Nevertheless, these markets include a high proportion of developing economies, with higher expected losses in banking assets, and less transparency in accounting and governance.

We expect the operating environment in several of these markets (such as Malaysia, Indonesia, and China) to become more challenging due to changing growth and interest rate conditions, and the operations of Singapore banks will be impacted in these regions.