Featured Product

    MAS Revises Notices Related to Liquidity Risk and Covered Bonds

    June 24, 2022

    The Monetary Authority of Singapore (MAS) revised Notice 651 on liquidity coverage ratio (LCR) disclosure, Notice 652 and related reporting template on net stable funding ratio (NSFR), and Notice 653 on NSFR disclosure. MAS also revised Notices 649 and 1015 on minimum liquid assets and liquidity coverage ratio and cancelled Notice 613 on minimum liquid assets. Additionally, MAS revised Notice 648 on issuance of covered bonds by banks and Notice 658 on minimum cash balance.

    Below are the key highlights of the recently revised MAS Notices:

    • Notice 651 on LCR disclosure applies to all domestic systemically important banks (D-SIBs) and internationally active banks. It sets out requirements for a bank to disclose quantitative and qualitative information about their LCR. It also sets out requirements for a bank to disclose information related to its internal liquidity risk measurement and management framework, as well as information to enable market participants to better understand its liquidity risk management and positions. The revised Notice 651 came into effect on July 01, 2022.
    • Notice 652 on NSFR has been issued pursuant to sections 10C(1) and 65(2) of the Banking Act 1970 (the Act), while Notice 653 on NSFR disclosure has been issued pursuant to section 10B(1) of the Act. Both the Notices apply to all D-SIBs and internationally active banks. Notice 652 sets out the minimum all currency NSFR requirements that a bank has to comply with while Notice 653 sets out requirements for a bank to disclose quantitative and qualitative information about its NSFR. The revised Notice 652, and the related reporting template, as well as Notice 653 came into effect on July 01, 2022.
    • Notices 649 and 1015 set out the minimum liquid assets requirements and the LCR requirements. Notice 649 has been issued pursuant to sections 38(1) and 65(2) of the Act and applies to all banks in Singapore, while Notice 1015 has been issued pursuant to section 38(1) as applied by section 55ZG(1) and section 65A(2) of the Act and applies to all merchant banks in Singapore. Along with other revisions, Forms 1 and 2 associated with Notice 649 have been updated. The revised Notice 649 and its associated forms as well as Notice 1015 came into effect on July 01, 2022.
    • Notice 648 sets out the requirements that banks have to comply with when issuing covered bonds. These include cover pool assets and encumbrance limit, risk management requirements, and notification and other requirements. Notice 648 has been issued pursuant to section 55 of the Banking Act (Cap. 19) and is applicable to banks in Singapore. The revised Notice 648 came into effect on July 01, 2022.
    • Notice 758 sets out the minimum cash balance (MCB) requirements that a bank has to comply with. Notice 758 has been issued pursuant to section 39(1) of the Act and applies to all banks in Singapore. A bank must, during a maintenance period, maintain in its Current Account and Custody Cash Account, an aggregate minimum cash balance of at least an average 3% of its average Singapore Dollar Qualifying Liabilities (computed during a computation period. The revised Notice 758 came into effect on July 01, 2022.


    Keywords: Asia Pacific, Singapore, Banking, Securities, LCR, NSFR, Disclosure, Covered Bonds, Liquidity Risk, Basel, Merchant Banks, MAS

    Featured Experts
    Related Articles
    News

    APRA Publishes Results of Climate Risk Self-Assessment Survey

    The Australian Prudential Regulation Authority (APRA) has published the findings of its latest climate risk self-assessment survey conducted across the banking, insurance, and superannuation industries.

    August 04, 2022 WebPage Regulatory News
    News

    ACPR Publishes Updates Related to CRD IV and Covered Bonds

    The French Prudential Supervisory Authority (ACPR) published a notice related to the methods for calculating and publishing prudential ratios under the Capital Requirements Directive (CRD IV) and the minimum requirement for own funds and eligible liabilities (MREL).

    August 03, 2022 WebPage Regulatory News
    News

    BIS Paper Contributes to Debate on Regulating NBFIs and Big Techs

    The Financial Stability Institute (FSI) of the Bank for International Settlements recently published a paper proposing a framework for classifying financial stability regulation as either entity-based or activity-based.

    August 03, 2022 WebPage Regulatory News
    News

    EIOPA Publishes Guidance on Climate Change Scenarios in ORSA

    The European Insurance and Occupational Pension Authority (EIOPA) published the risk dashboard based on Solvency II data and the final version of the application guidance on climate change materiality assessments and climate change scenarios in the Own Risk and Solvency Assessment (ORSA).

    August 02, 2022 WebPage Regulatory News
    News

    EBA and ECB Respond to Proposals on Sustainability Disclosures

    The European Banking Authority (EBA) and the European Central Bank (ECB) published their responses to the consultations of the International Sustainability Standards Board (ISSB) and the European Financial Reporting Advisory Group (EFRAG) on sustainability-related disclosure standards.

    August 01, 2022 WebPage Regulatory News
    News

    BIS Report Notes Existing Gaps in Climate Risk Data at Central Banks

    A Consultative Group on Risk Management (CGRM) at the Bank for International Settlements (BIS) published a report that examines incorporation of climate risks into the international reserve management framework.

    July 29, 2022 WebPage Regulatory News
    News

    EBA Publishes Multiple Regulatory Updates for Regulated Entities

    The European Banking Authority (EBA) published the final guidelines on liquidity requirements exemption for investment firms, updated version of its 5.2 filing rules document for supervisory reporting, and Single Rulebook Question and Answer (Q&A) updates in July 2022.

    July 29, 2022 WebPage Regulatory News
    News

    EIOPA Issues SII Taxonomy and Guide on Sustainability Preferences

    The European Insurance and Occupational Pensions Authority (EIOPA) published Version 2.8.0 of the Solvency II data point model (DPM) and XBRL taxonomy.

    July 29, 2022 WebPage Regulatory News
    News

    EESC Opines on Proposals on CRR and European Single Access Point

    The European Union published, in the Official Journal of the European Union, an opinion from the European Economic and Social Committee (EESC); the opinion is on the proposal for a regulation to amend the Capital Requirements Regulation (CRR).

    July 29, 2022 WebPage Regulatory News
    News

    HM Treasury Publishes Multiple Regulatory Updates in July 2022

    HM Treasury published a draft statutory instrument titled “The Financial Services (Miscellaneous Amendments) (EU Exit) Regulations 2022,” along with the related explanatory memorandum and impact assessment.

    July 29, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8423