MAS Responds to Feedback on Large Exposures Framework in Singapore

MAS sets out the regulatory requirements on large exposures of a bank under the Banking Act and MAS Notice 639 on Exposures to Single Counterparty Groups. The revisions will strengthen the regulatory framework for addressing concentration of exposures to counterparties and limiting the maximum loss that a bank faces in the event of a sudden counterparty default. Exposure measurement methods for the purpose of the revised large exposures requirements will also be aligned to the risk-based capital framework, where appropriate. The objective of these requirements is to limit the concentration and contagion risks arising from a bank’s exposures to a counterparty or a single counterparty group. The proposed revisions take into account relevant aspects of the “Supervisory framework for measuring and controlling large exposures,” which BCBS had published in April 2014. These revisions will replace the requirements currently set out in MAS Notice 639 for the Singapore-incorporated banks.

Keywords: Asia Pacific, Singapore, Banking, Large Exposures, MAS Notice 639, Responses to Consultation, Reporting, MAS