MAS published Notice 654 and guidelines to Notice 654 on the requirements that a notified bank has to comply with in its recovery and resolution planning. The guidelines further elaborate on the requirements in the Notice and should be read in conjunction with Notice 654. The Notice shall take effect on January 30, 2019.
For the purpose of this notice, a “bank” means a bank that is incorporated in Singapore or, in the case of a bank incorporated outside Singapore, the branches and offices of the bank located within Singapore. In determining whether the bank’s recovery plan has adequately covered and addressed the Singapore operations, MAS will consider if the recovery plan includes the following factors:
- Details of the local governance and oversight
- Monitoring and escalation framework for the Singapore operations, including quantitative and qualitative triggers
- Recovery options available to the Singapore operations
- A communication plan specific to the stakeholders in Singapore
- An analysis of the impact of the group-wide recovery plan on the Singapore operations
Recovery and resolution planning is an important process to reduce risks posed by a bank to the stability of the financial system, ensure the continuity of critical functions to the economy, and allow a distressed bank to restore its financial strength, be restructured, or to exit the market in an orderly manner. The recovery and resolution planning process is an iterative one. MAS will engage and collaborate closely with banks to clarify their obligations and the MAS expectations with regard to the recovery and resolution plan as part of its supervisory interaction with banks.
Effective Date: January 30, 2019
Keywords: Asia Pacific, Singapore, Banking, MAS Notice 654, Recovery and Resolution, Resolution Plan, MAS
Next ArticleEBA Updates List of Correlated Currencies Under CRR
BoE published a statistical notice (Notice 2020/9) explaining the approach for treatment of payment holidays on the profit and loss return or Form PL.
BoE updated the known issues document for the statistical reporting Forms AS and FV.
BIS published an update on the G20 TechSprint Initiative, which was launched in April 2020 and aims to highlight the potential for technologies to resolve regulatory compliance (regtech) and supervisory (suptech) challenges.
FED announced individual capital requirements for 34 large banks and these requirements go into effect on October 01, 2020.
SRB published a set of documents to give operational guidance to banks on implementation of the bail-in tool.
OSFI published a letter that provides an update on the milestones for the implementation of the IFRS 17 standard on insurance contracts.
EBA updated the report on the implementation of selected COVID-19 policies.
The Financial Stability Institute (FSI) of BIS published a brief note that examines the supervisory challenges associated with certain temporary regulatory relief measures introduced by BCBS and prudential authorities in response to the COVID-19 pandemic.
BCBS is consulting on the principles for operational resilience and the revisions to the principles for sound management of operational risk for banks.
BoE updated the reporting template for Form ER as well as the Form ER definitions, which contain guidance on the methodology to be used in calculating annualized interest rates.