Featured Product

    MAS Amends Notice 612 on ECL Recognition in Bank Financial Statements

    December 29, 2017

    MAS amended Notice 612, which takes effect on January 01, 2018 and replaces the version of the MAS Notice 612 dated March 11, 2005. This Notice requires banks to maintain proper credit files on all borrowers, conduct regular and systematic reviews of credit facilities, and grade them. The Notice also addresses the requirements for recognition of credit loss allowance for expected credit losses (ECL) in the financial statements of banks.

    Under the Singapore Financial Reporting Standard (FRS) 109 on Financial Instruments, a bank shall recognize a loss allowance for expected credit losses (ECL) on selected financial assets. The loss allowance for credit exposures is measured at an amount equal to 12-month ECL if the credit risk on the credit exposure has not increased significantly since initial recognition. For credit exposures on which the credit risk has increased significantly since initial recognition, the loss allowance is measured at an amount equal to the lifetime ECL. ECL is measured on an individual or collective basis, taking into account all reasonable and supportable information, including that which is forward-looking.

    As a transitional arrangement, where a locally incorporated domestic systemically important bank (D-SIB) does not maintain the 1% minimum collective impairment provisions required under MAS Notice 612 (dated March 11, 2005) as at December 31, 2017, the D-SIB shall comply with the requirements in paragraphs 6.3.7 and 6.3.8 of this Notice and establish the additional loss allowance within two years, commencing from the first annual financial reporting period beginning on or after January 01, 2018. This Notice applies to all banks in Singapore.

     

    Effective Date: January 01, 2018

    Keywords: Asia Pacific, Singapore, Banking, Accounting, ECL, IFRS 9, FRS 109, Credit Risk, MAS Notice 612, MAS

    Featured Experts
    Related Articles
    News

    EBA Analyzes Impact of Unwind Mechanism of Liquidity Coverage Ratio

    EBA published a report analyzing the impact of the unwind mechanism of the liquidity coverage ratio (LCR) for a sample of European banks over a three-year period, from the end of 2016 to the first quarter of 2020.

    November 19, 2020 WebPage Regulatory News
    News

    ECB Outlines Views on Possible Changes to AnaCredit Rule and TLTROs

    In response to questions from a member of the European Parliament, the ECB President Christine Lagarde issued a letter clarifying the possibility of amending the AnaCredit Regulation and making targeted longer-term refinancing operations (TLTROs) dependent on the climate-related impact of bank loans.

    November 19, 2020 WebPage Regulatory News
    News

    IASB Begins First Phase of Post-Implementation Review of IFRS 9

    IASB started the post-implementation review of the classification and measurement requirements in IFRS 9 on financial instruments and added the review as a project to its work plan.

    November 18, 2020 WebPage Regulatory News
    News

    FSB Report Examines Progress in Resolvability of Systemic Institutions

    FSB published a report that examines progress in implementing policy measures to enhance the resolvability of systemically important financial institutions.

    November 18, 2020 WebPage Regulatory News
    News

    EBA Benchmarks National Insolvency Frameworks Across EU

    EBA published a report on the benchmarking of national loan enforcement frameworks across 27 EU member states, in response to the call for advice from EC.

    November 18, 2020 WebPage Regulatory News
    News

    FSB Reports Assess Impact of Pandemic on Financial Stability

    FSB published a letter from its Chair Randal K. Quarles, along with two reports exploring various aspects of the market turmoil resulting from the COVID-19 event.

    November 17, 2020 WebPage Regulatory News
    News

    RBNZ Consults on Implementation of Capital Review Changes

    RBNZ launched a consultation on the details for implementing the final Capital Review decisions announced in December 2019.

    November 17, 2020 WebPage Regulatory News
    News

    IASB Announces Andreas Barckow as the New Chair from July 2021

    The Trustees of the IFRS Foundation, which are responsible for the governance and oversight of IASB, have announced the appointment of Dr. Andreas Barckow as the IASB Chair, effective July 2021.

    November 17, 2020 WebPage Regulatory News
    News

    HKMA Consults on Capital Rules for Bank Equity Investments in Funds

    HKMA issued a letter to consult the banking industry on a full set of proposed draft amendments to the Banking (Capital) Rules for implementing the Basel standard on capital requirements for banks’ equity investments in funds in Hong Kong.

    November 17, 2020 WebPage Regulatory News
    News

    ESRB Supports Extension of Macro-Prudential Measure by Swedish FSA

    ESRB published an opinion assessing the decision of Swedish Financial Supervisory Authority (FSA) to extend the application period of a stricter measure for residential mortgage lending, in accordance with Article 458 of the Capital Requirements Regulation (CRR).

    November 17, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 6153