MAS amended Notice 637 on risk-based capital adequacy requirements for banks incorporated in Singapore. The amendments concern a minimum leverage ratio requirement of 3%, technical enhancements to the capital treatment of equity investments, and the definition of default under the Internal Ratings-Based Approach for credit risk. The amendments shall take effect on January 01, 2018. MAS also published its response to the feedback received on the proposed amendments in MAS Notice 637.
MAS had, in July 2017, published a consultation paper on the proposed amendments. The consultation period ended in August 25, 2017. The amendments made to MAS Notice 637 include the following:
- Introduction of a minimum leverage ratio requirement of 3%
- Technical enhancements to the capital treatment of equity investments, the definition of default under the Internal Ratings Based Approach for credit risk, and the definition of insurance subsidiary
- Technical amendments to the Notice in consideration of the new accounting treatment of provisions
Effective Date: January 01, 2018
Keywords: Asia Pacific, Singapore, Banking, Capital Requirements, Leverage Ratio, MAS Notice 637, IRB Approach, MAS
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