The Monetary Authority of Singapore (MAS) issued amendments to Notice 637 on risk-based capital adequacy requirements for banks incorporated in Singapore. The document reflects amendments to implement the framework for treatment of major stake investments in financial institutions at the solo level. The amendments shall take effect from August 18, 2021. The MAS Notice 637 has been issued pursuant to Sections 10(2), 10A(1), 10B(1), and 65(2) of the Banking Act and applies to all locally incorporated banks.
Notice 637 establishes the minimum capital adequacy ratios for a reporting bank and the methodology a reporting bank shall use for calculating ratios under the Pillar 1 of Basel standards. In addition to complying with the minimum regulatory capital requirements in this notice, a reporting bank shall consider whether it has adequate capital to cover its exposure to all risks. The notice also sets out expectations in respect of the internal capital adequacy assessment process of a reporting bank under the supervisory review process, under the Pillar 2 of Basel standards. The notice also specifies the minimum disclosure requirements for a reporting bank in relation to its capital adequacy, with a view to enhancing market discipline, which is part of the Pillar 3 under Basel standards. In addition, the notice sets out the data submission and disclosure requirements for assessing global systemically important banks.
Effective Date: August 18, 2021
Keywords: Asia Pacific, Singapore, Banking, Basel, Regulatory Capital, Reporting, Notice 637, Disclosures, Credit Risk, MAS
Previous ArticleEBA Report Reviews Functioning of Resolution Colleges in EU
Next ArticleBaFin Issues Regulatory Updates for Banks in Germany
The Office of the Superintendent of Financial Institutions (OSFI) published an update on the discussion paper that intended to engage federally regulated financial institutions and other interested stakeholders in a dialog with OSFI, to proactively enhance and align assurance expectations over key regulatory returns.
The European Commission (EC) published a report summarizing responses to the targeted consultation on the supervisory convergence and the single rulebook in the European Union (EU).
The European Central Bank (ECB) published its opinion on a proposal for a regulation on European green bonds, following a request from the European Parliament.
The Advisory Scientific Committee (ASC) of the European Systemic Risk Board (ESRB) published a report that explores the expected impact of digitalization on provision of financial and banking services, and proposes policy measures to address the risks stemming from digitalization.
The Hong Kong Monetary Authority (HKMA) is consulting on the draft Financial Institutions (Resolution) Ordinance (Cap. 628), or FIRO, Code of Practice chapter on liquidity and funding in resolution, until March 14, 2022.
The Swedish Financial Supervisory Authority (FI) announced that the capital adequacy reporting as at December 31, 2021 must be done by February 11, 2022.
The European Banking Authority (EBA) announced that the guidelines on the reporting and disclosure of exposures subject to measures COVID-relief measures shall continue to apply until further notice.
The Central Bank of the Philippines (BSP) issued communications covering developments related to online lending platforms, open finance framework and roadmap, and on the expected regulations in the area sustainable finance.
The Board of Governors of the Federal Reserve System (FED) published the final rule that amends Regulation I to reduce the quarterly reporting burden for member banks by automating the application process for adjusting their subscriptions to the Federal Reserve Bank capital stock, except in the context of mergers.
The European Banking Authority (EBA) published its assessment of risks through the quarterly Risk Dashboard and the results of the Autumn edition of the Risk Assessment Questionnaire (RAQ).