MAS issued amendments to the Notice 637 on risk-based capital adequacy requirements for banks incorporated in Singapore. The document reflects amendments to allow the recognition of on-balance sheet netting agreements for loans and deposits for credit risk mitigation purposes, introduce proportionality for disclosure requirements, revise certain disclosure templates, and implement other technical revisions. The amendments reflected in this document shall take effect from June 30, 2019.
In the event of discrepancies between the amendments in this document and the published version of MAS Notice 637 revised on June 10, 2019 (with effect from June 30, 2019), the published version of MAS Notice 637 shall prevail. Notice 637 establishes the minimum capital adequacy ratios for a reporting bank and the methodology a reporting bank shall use for calculating ratios under Pillar 1 of Basel. In addition to complying with the minimum regulatory capital requirements in this Notice, a reporting bank shall consider whether it has adequate capital to cover its exposure to all risks. This Notice sets out the MAS expectations in respect of the internal capital adequacy assessment process of a reporting bank under the supervisory review process, under the Pillar 2 of Basel standards. This Notice also specifies the minimum disclosure requirements for a reporting bank in relation to its capital adequacy, with a view to enhancing market discipline, which is part of the Pillar 3 under Basel standards. In addition, this Notice sets out the data submission and disclosure requirements for assessing global systemically important banks.
Effective Date: June 30, 2019
Keywords: Asia Pacific, Banking, Singapore, Basel III, Capital Adequacy, Notice 637, Disclosures, Reporting, Proportionality, MAS
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