MAS Consults on Operational Risk and Leverage Ratio Requirements
MAS launched a consultation on the draft standards for operational risk capital and leverage ratio requirements for banks incorporated in Singapore; these standards will be covered in the MAS Notice 637 on risk-based capital adequacy requirements. Also published were the associated proposed reporting schedules for operational risk capital and leverage ratio requirements. The comment period on this consultation ends on January 21, 2021. In addition, MAS published its response to the feedback received on the May 2019 proposals on operational risk capital and leverage ratio requirements. MAS plans to consult on the draft MAS Notice 637 provisions for other areas of the Basel III reforms at a later date.
MAS seeks comments on the draft provisions of MAS Notice 637 for definitions related to operational risk capital and leverage ratio requirements (Part II), scope of application (Part III), capital adequacy ratios and leverage ratio (Part IV), credit risk (Part VII), operational risk (Part IX), and reporting schedules (Part XII). The draft provisions in MAS Notice 637 take into account final Basel III reforms published by BCBS, namely the consolidated Basel framework (published in December 2019) and the Basel framework frequently asked questions (published in June 2020). Annex B of the consultation paper contains the draft MAS Notice 637 provisions, including the reporting forms. As announced earlier, MAS will implement the revised standards for operational risk capital and leverage ratio requirements from January 01, 2023. MAS will consult on the following at a later date:
- Definition of commitments, including the exemption from the definition of commitments under a national discretion in the final Basel III reforms, which would also apply to the leverage ratio requirements. MAS will consult on the other elements of Part II for other areas of the Basel III reforms at a later date.
- Recognition of commitments, and credit conversion factors for progressive disbursal loans, which would also apply to the leverage ratio requirements. MAS will consult on certain elements of Part IV for other areas of the Basel III reforms at a later date.
Comment Due Date: January 21, 2021
Keywords: Asia Pacific, Singapore, Banking, Basel, Reporting, Operational Risk, Leverage Ratio, Regulatory Capital, MAS
Featured Experts
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
Patrycja Oleksza
Applies proficiency and knowledge to regulatory capital and reporting analysis and coordinates business and product strategies in the banking technology area
Previous Article
IASB Updates IFRS Taxonomy to Reflect Benchmark Reform AmendmentsRelated Articles
EBA Publishes Final Regulatory Standards on STS Securitizations
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying and, where relevant, calibrating the minimum performance-related triggers for simple.
ECB Further Reviews Costs and Benefits Associated with IReF
The European Central Bank (ECB) is undertaking the integrated reporting framework (IReF) project to integrate statistical requirements for banks into a standardized reporting framework that would be applicable across the euro area and adopted by authorities in other EU member states.
EBA Publishes Funding Plans Report, Receives EMAS Certification
The European Banking Authority (EBA) has been awarded the top European Standard for its environmental performance under the European Eco-Management and Audit Scheme (EMAS).
MAS Launches SaaS Solution to Simplify Listed Entity ESG Disclosures
The Monetary Authority of Singapore (MAS) set out the Financial Services Industry Transformation Map 2025 and, in collaboration with the SGX Group, launched ESGenome.
BCBS to Finalize Crypto Rules by End-2022; US to Propose Basel 3 Rules
The Basel Committee on Banking Supervision met, shortly after a gathering of the Group of Central Bank Governors and Heads of Supervision (GHOS), the oversight body of BCBS.
IOSCO Welcomes Work on Sustainability-Related Corporate Reporting
The International Organization of Securities Commissions (IOSCO) welcomed the work of the international audit and assurance standard setters—the International Auditing and Assurance Standards Board (IAASB)
BoE Allows One-Day Delay in Statistical Data Submissions by Banks
The Bank of England (BoE) published a Statistical Notice (2022/18), which informs that due to the Bank Holiday granted for Her Majesty Queen Elizabeth II’s State Funeral on Monday September 19, 2022.
ACPR Amends Reporting Module Timelines Under EBA Framework 3.2
The French Prudential Control and Resolution Authority (ACPR) announced that the European Banking Authority (EBA) has updated its filing rules and the implementation dates for certain modules of the EBA reporting framework 3.2.
ECB Paper Discusses Disclosure of Climate Risks by Credit Agencies
The European Central Bank (ECB) published a paper that examines how credit rating agencies accepted by the Eurosystem, as part of the Eurosystem Credit Assessment Framework (ECAF)
APRA to Modernize Prudential Architecture, Reduces Liquidity Facility
The Australian Prudential Regulation Authority (APRA) announced reduction in the aggregate Committed Liquidity Facility (CLF) for authorized deposit-taking entities to ~USD 33 billion on September 01, 2022.
