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

    BoE Seeks Information Before Migrating Statistical Reporting to BEEDS

    The Bank of England (BoE) published the Statistical Notice 2021/09 requiring additional information from firms and software vendors to assist in the onboarding and testing phases for migrating statistical reporting to the BEEDS portal.

    October 25, 2021 WebPage Regulatory News
    News

    FCA Publishes Final Rules on Investment Firms Prudential Regime

    The Financial Conduct Authority (FCA) published the final rules on the Investment Firms Prudential Regime (IFPR) to streamline and simplify the prudential requirements for solo-regulated UK firms authorized under the Markets in Financial Instruments Directive (MiFID).

    October 25, 2021 WebPage Regulatory News
    News

    CFRF Publishes Guides to Manage Financial Risks from Climate Change

    The working groups of the Climate Financial Risk Forum (CFRF) published a second round of guides (or Session 2 guides), written by the industry for the industry, to help financial firms manage climate-related financial risks.

    October 21, 2021 WebPage Regulatory News
    News

    PRA Finalizes Policy for Non-Performing Exposure Securitizations

    The Prudential Regulation Authority (PRA) published the final Policy Statement PS24/21 that contains the new Non-Performing Exposures Securitization Part of the PRA Rulebook and an updated Supervisory Statement SS10/18 on the general requirements and capital framework with respect to securitizations.

    October 21, 2021 WebPage Regulatory News
    News

    EBA Updates Filing Rules for Supervisory Reporting

    The European Banking Authority (EBA) published version 5.1 of the filing rules for supervisory reporting.

    October 19, 2021 WebPage Regulatory News
    News

    ECB Amends Guideline on Procedures for Collection of AnaCredit Data

    The European Central Bank (ECB) Guideline 2021/1829 on the procedures for the collection of granular credit and credit risk data has been published in the Official Journal of European Union.

    October 19, 2021 WebPage Regulatory News
    News

    ECB Amends Guideline on Procedures for Collection of AnaCredit Data

    The European Central Bank (ECB) Guideline 2021/1829 on the procedures for the collection of granular credit and credit risk data has been published in the Official Journal of European Union.

    October 19, 2021 WebPage Regulatory News
    News

    EBA Publishes Standards on Disclosure of Investment Policy Under IFR

    The European Banking Authority (EBA) published the final draft regulatory technical standards on disclosure of investment policy by investment firms, under the Investment Firms Regulation (IFR).

    October 19, 2021 WebPage Regulatory News
    News

    EU to Explore Potential of Establishing a Joint Cyber Unit

    The European Council adopted conclusions inviting the European Union (EU) and the member states to further develop the cybersecurity crisis management framework.

    October 19, 2021 WebPage Regulatory News
    News

    EC Sets Out Work Program for 2022

    The European Commission (EC) adopted the work program for 2022.

    October 19, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7598