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
Previous ArticleFASB Proposes to Improve Guidance for Certain Financial Instruments
The Hong Kong Monetary Authority (HKMA) revised the Supervisory Policy Manual module CG-5 that sets out guidelines on a sound remuneration system for authorized institutions.
The European Banking Authority (EBA) published the final guidelines on the monitoring of the threshold and other procedural aspects on the establishment of intermediate parent undertakings in European Union (EU), as laid down in the Capital Requirements Directive (CRD).
In a recent Market Notice, the Bank of England (BoE) confirmed that green gilts will have equivalent eligibility to existing gilts in its market operations.
The Financial Conduct Authority (FCA) published the policy statement PS21/9 on implementation of the Investment Firms Prudential Regime.
The European Banking Authority (EBA) proposed regulatory technical standards that set out criteria for identifying shadow banking entities for the purpose of reporting large exposures.
The Board of the International Organization of Securities Commissions (IOSCO) proposed a set of recommendations on the environmental, social, and governance (ESG) ratings and data providers.
The European Securities and Markets Authority (ESMA) published recommendations from the Working Group on Euro Risk-Free Rates (RFR) on the switch to risk-free rates in the interdealer market.
The European Central Bank (ECB) published a paper as well as an article in the July Macroprudential Bulletin, both of which offer insights on the assessment of the impact of Basel III finalization package on the euro area.
The International Swaps and Derivatives Association (ISDA) published a paper that explores the impact of the Fundamental Review of the Trading Book (FRTB) on the trading of carbon certificates.
The Prudential Regulation Authority (PRA) published the remuneration policy self-assessment templates and tables on strengthening accountability.