Featured Product

    MAS Consults on Credit Risk Capital and Output Floor Requirements

    March 25, 2021

    MAS proposed standards for credit risk capital and output floor requirements for banks incorporated in Singapore, with the comment period ending on April 26, 2021. The proposed standards will be covered in the MAS Notice 637 on risk-based capital adequacy requirements. Also published were the associated proposed reporting schedules for credit risk capital, capital ratio, capital buffers, and output floor requirements. In addition to the consultation, MAS also published its response to the feedback received on the May 2019 proposals on credit risk capital and output floor requirements.

    The amendments proposed in the current consultation consider the feedback received on the May 2019 consultation as well as the MAS response to feedback on the May 2019 proposals on credit risk capital and output floor requirements. In the consultation from May 2019, MAS had proposed revisions to the risk-based capital requirements and leverage ratio requirements for banks incorporated in Singapore; these revisions were proposed to implement the final Basel III reforms published by BCBS, covering the minimum capital requirements for market risk (published in January 2019) and the revised standards for credit risk, credit valuation adjustment, operational risk, output floor, and the leverage ratio (published in December 2017). 

    In this consultation paper, Annex B on credit risk capital and output floor requirements sets out the proposed MAS Notice 637 provisions (with proposed changes highlighted in red), including the reporting forms. MAS is seeking comments on the draft provisions for credit risk capital requirements in Part II (Definitions), Part VI (Definition of Capital), Part VII (Credit Risk), and Part XII (Reporting Schedules) and on the draft provisions for the output floor requirements in Part II (Definitions), Part IV (Capital Adequacy Ratios and Leverage Ratio), Part V (Output Floor), and Part XII (Reporting Schedules) of the MAS Notice 637 in Annex B. MAS had earlier announced that it will implement the revised standards for credit risk capital and output floor from January 01, 2023, with the transitional arrangements provided for implementation of the output floor till January 01, 2028. At a later date, MAS plans to also consult on other reporting schedules under Part XII and on other elements of:

    • Part II for other areas of the Basel III reforms, including definitions of terms related to market risk and credit valuation adjustment capital requirements (used in the draft provisions included in this consultation paper)
    • Capital adequacy ratios and leverage ratio under Part IV for other areas of the Basel III reforms
    • Part VI on definition of capital

     

    Comment Due Date: April 26, 2021

    Keywords: Asia Pacific, Singapore, Banking, Basel, Reporting, Regulatory Capital, Credit Risk, Output Floor, Notice 637, MAS

    Featured Experts
    Related Articles
    News

    BIS Paper Studies Impact of Fintech Lending on Small Businesses in US

    The Bank for International Settlements (BIS) published a paper that studies impact of fintech lending on credit access for small businesses in U.S.

    September 26, 2022 WebPage Regulatory News
    News

    UK Regulators Issue CRR Changes and Stress Test Scenarios for Banks

    The Prudential Regulation Authority (PRA) issued the policy statement PS8/22 to amend the Own Funds and Eligible Liabilities (CRR) Part of the PRA Rulebook and update the supervisory statement SS7/13 titled "Definition of capital (CRR firms).

    September 26, 2022 WebPage Regulatory News
    News

    EBA Launches EU-Wide Transparency Exercise in 2022

    The European Banking Authority (EBA) launched the EU-wide transparency exercise for 2022, with results of the exercise expected to be published at the beginning of December, along with the annual Risk Assessment Report.

    September 23, 2022 WebPage Regulatory News
    News

    SRB on CRR Quick-Fix to Policy for Multiple Point of Entry Banks

    The Single Resolution Board (SRB) welcomed the adoption of the review of the Capital Requirements Regulation, or CRR, also known as the "CRR quick-fix."

    September 22, 2022 WebPage Regulatory News
    News

    EC Rule Lists Advanced Economies for Market Risk Capital Calculations

    The European Commission (EC) recently adopted the Delegated Regulation 2022/1622, which sets out the regulatory technical standards to specify the countries that constitute advanced economies for the purpose of specifying risk-weights for the sensitivities to equity.

    September 21, 2022 WebPage Regulatory News
    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
    RESULTS 1 - 10 OF 8521