Featured Product

    MAS Revises Notices and Guidelines Applicable to Banks in Singapore

    July 01, 2021

    MAS revised Notice 1005A that sets out the credit grading treatment for credit facilities granted support in response to the ongoing COVID-19 outbreak, between January 01, 2021 and December 31, 2021. Notice 1005A clarifies that, for the stipulated period, a merchant bank is not required to classify the credit facility of a borrower, just because the borrower is being granted extended credit support measures. Instead, merchant banks should holistically assess a borrower’s ability to fully repay its credit facilities. The revised Notice 1005A applies to merchant banks in Singapore and takes effect from June 30, 2021. MAS has also revised Notice 631 with respect to the mean of "customer" under Banking Act, guidelines on margin requirements, and guidelines on fit and proper criteria.

    The following are the key highlights of the announced revisions:

    • Notice 631 on meaning of customer under Banking Act. This notice specifies that, under section 40A of the Banking Act, the term "customer" excludes any company carrying on merchant banking business or investment banking business. The notice applies to all banks in Singapore and takes effect on July 01, 2021.
    • Guidelines on margin requirements for non-centrally cleared over-the-counter (OTC) derivatives contracts. The guidelines cover the scope of products and entities, margin calculations and methodologies, and eligible collateral and haircuts. These revised guidelines, which have been issued pursuant to section 321 of the Securities and Futures Act (Cap. 289), apply to the MAS Covered Entities and take effect on July 01, 2021.
    • Guidelines on fit and proper criteria. The guidelines set out the fit and proper criteria that apply to all relevant persons carrying out any MAS-regulated activity. The relevant person is expected to be competent, honest, have integrity, and be of sound financial standing. The guidelines cover definitions of relevant persons, scope of application, and criteria for considering whether a relevant person is fit and proper. The revised guidelines became effective immediately on publication.

    Additionally, MAS has updated the list of frequently asked questions (FAQs) on the Securities and Futures (Reporting of Derivatives Contracts) Regulations 2013. The FAQs, which are relevant for over-the-counter counterparties, are intended to aid in the implementation of the reporting obligations and elaborate on MAS’ intent for certain requirements set out under the Securities and Futures (Reporting of Derivatives Contracts) Regulations. MAS also announced the cancellation of several Notices and Directives, which had been issued under the MAS Act and held relevance for merchant banks, with effect from July 01, 2021. The cancelled instruments cover topics such as corporate governance, capital adequacy, credit risk, and the MAS approach to resolution.

     

    Effective Date: June 30, 2021 (Notice 1005A)/July 01, 2021

    Keywords: Asia Pacific, Singapore, Banking, Margin Requirements, COVID-19, Credit Risk, Merchant Banks, Loan Repayment, Banking Act, OTC Derivatives, FAQ, Securities and Futures Regulation, Loan Moratorium, Capital Adequacy, Governance, Operational Risk, MAS

    Featured Experts
    Related Articles
    News

    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.

    September 20, 2022 WebPage Regulatory News
    News

    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.

    September 15, 2022 WebPage Regulatory News
    News

    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).

    September 15, 2022 WebPage Regulatory News
    News

    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.

    September 15, 2022 WebPage Regulatory News
    News

    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.

    September 15, 2022 WebPage Regulatory News
    News

    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)

    September 15, 2022 WebPage Regulatory News
    News

    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.

    September 14, 2022 WebPage Regulatory News
    News

    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.

    September 14, 2022 WebPage Regulatory News
    News

    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)

    September 13, 2022 WebPage Regulatory News
    News

    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.

    September 12, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8514