MAS amended Notice 637 on the risk-based capital adequacy requirements for reporting banks incorporated in Singapore. The notice is issued pursuant to section 10(2), section 10A(1), section 10B(1), and section 65(2) of the Banking Act and applies to all locally incorporated full banks and wholesale banks. The amendments to the notice relate to Part VI on definition of capital, Part XI on public disclosure requirements, and Part XII on schedules for capital adequacy reporting. The amendments shall take effect from March 31, 2020.
The changes have been made to MAS Notice 637 to allow full recognition of balances maintained in regulatory loss allowance reserve accounts, pursuant to paragraph 6.3 of MAS Notice 612, as tier 2 capital. Notice 637 notice sets out:
- Capital adequacy ratio and leverage ratio requirements for a locally incorporated banks and the methodology and process for calculating these ratios
- Requirements for the internal capital adequacy assessment process of a locally incorporated bank
- Public disclosure requirements for a locally incorporated bank in relation to its capital adequacy and risk exposures
- Data submission and disclosure requirements on the indicators for assessing the systemic importance of global banks
Effective Date: March 31, 2020
Keywords: Asia Pacific, Singapore, Banking, MAS Notice 637, Capital Adequacy, Credit Risk, Basel III, Reporting, MAS
Previous ArticleGLEIF Opens Office in US, Appoints Steven Joachim as New Board Chair
ECB finalized the guide on assessment methodology for the internal model method for calculating exposure to counterparty credit risk (CCR) and the advanced method for own funds requirements for credit valuation adjustment (A-CVA) risk.
EBA published an Opinion addressed to EC to raise awareness about the opportunity to clarify certain issues related to the definition of credit institution in the upcoming review of the Capital Requirements Directive and Regulation (CRD and CRR).
APRA is consulting on updates to ARS 210.0, the reporting standard that sets out requirements for provision of information on liquidity and funding of an authorized deposit-taking institution.
FED released hypothetical scenarios for a second round of stress tests for banks.
PRA published updates in relation to the 2021 Supervisory Benchmarking Portfolio exercise.
FED adopted a proposal to extend for three years, with revision, the capital assessments and stress testing reports (FR Y-14A/Q/M; OMB No. 7100-0341).
HKMA revised the Supervisory Policy Manual module CR-G-14 on margin and other risk mitigation standards for non-centrally cleared over-the-counter (OTC) derivatives transactions.
EBA issued a revised list of validation rules with respect to the implementing technical standards on supervisory reporting.
EBA published its response to the call for advice of EC on ways to strengthen the EU legal framework on anti-money laundering and countering the financing of terrorism (AML/CFT).
NGFS published a paper on the overview of environmental risk analysis by financial institutions and an occasional paper on the case studies on environmental risk analysis methodologies.