Singapore  - Singapore on Tuesday suspended 10 financial institutions for improperly selling credit notes linked to the collapsed US investment bank Lehmann Brothers.

The bans would range from six months to two years starting on July 1 and would only be lifted when the central bank "is satisfied with the measures they have put in place," the Monetary Authority of Singapore said.

The banned financial institutions were ABN Amro Bank (Singapore Branch), DBS Bank, UOB Kay Hian, OCBC Securities, Malayan Banking Berhard (Singapore Branch), CIMB-GK Securities, Hong Leong Finance, DMG & Partners, Phillip Securities and Kim Eng Securities.

ABN, DBS, Malayan Banking Berhard, DMG and UOB Kay Hian got the lightest ban of six months, while Hong Leong Finance was punished with a longest ban of two years, the authority said.

The central bank found that risk-ratings to some series of the sold Lehman-linked notes "were inconsistent with risk warnings stated in the prospectus and pricing statement."

More than 10,000 Singaporeans lost money last year after buying credit notes linked to the bankrupt Lehman Bank, so far nearly 4,000 of them had been compensated by the financial institutions, the central bank said.

After Lehman Bank collapsed, angry Singapore investors staged several public protests, a rarity in the tightly controlled city-state.(dpa)