MAS announced a package of measures, which are aimed at banks, insurers, and finance companies, to help ease the financial strain on individuals and small and medium enterprises (SMEs) amid the COVID-19 crisis. MAS and the financial industry have collaborated on this package, which has three components: help individuals meet their loan and insurance commitments, support SMEs with continued access to bank credit and insurance cover, and ensure interbank funding markets remain liquid and well-functioning.
With respect to help on with loan and insurance commitments, individuals with residential property loans may apply to their respective bank or finance company to defer either the principal payment, or both principal and interest payments, up to December 31, 2020. To support SMEs with access to bank credit and insurance cover, MAS has allowed SMEs to opt for deferral of payment of principal on secured SME loans by up to December 31, 2020. Banks and finance companies may apply for low-cost funding through a new MAS SGD Facility for loans granted under Enterprise Singapore’s SME Working Capital Loan scheme and Temporary Bridging Loan Program. Banks and finance companies can apply for these funds until the end of December 2020, provided they commit to pass on the savings in funding cost to their SME borrowers. To address the liquidity issues, MAS has been already providing ample SGD liquidity to the banking system through its daily money market operations and has significantly stepped up its provision of USD liquidity to the banking system
Keywords: Asia Pacific, Singapore, Banking, Insurance, COVID 19, Loan Repayment, SME, Credit Risk, Liquidity Risk, MAS
Leading economist; commercial real estate; performance forecasting, econometric infrastructure; data modeling; credit risk modeling; portfolio assessment; custom commercial real estate analysis; thought leader.
Previous ArticleBank of Italy Updates Supporting Documents for AnaCredit Reporting
EBA published a report analyzing the impact of the unwind mechanism of the liquidity coverage ratio (LCR) for a sample of European banks over a three-year period, from the end of 2016 to the first quarter of 2020.
In response to questions from a member of the European Parliament, the ECB President Christine Lagarde issued a letter clarifying the possibility of amending the AnaCredit Regulation and making targeted longer-term refinancing operations (TLTROs) dependent on the climate-related impact of bank loans.
IASB started the post-implementation review of the classification and measurement requirements in IFRS 9 on financial instruments and added the review as a project to its work plan.
FSB published a report that examines progress in implementing policy measures to enhance the resolvability of systemically important financial institutions.
EBA published a report on the benchmarking of national loan enforcement frameworks across 27 EU member states, in response to the call for advice from EC.
FSB published a letter from its Chair Randal K. Quarles, along with two reports exploring various aspects of the market turmoil resulting from the COVID-19 event.
RBNZ launched a consultation on the details for implementing the final Capital Review decisions announced in December 2019.
The Trustees of the IFRS Foundation, which are responsible for the governance and oversight of IASB, have announced the appointment of Dr. Andreas Barckow as the IASB Chair, effective July 2021.
HKMA issued a letter to consult the banking industry on a full set of proposed draft amendments to the Banking (Capital) Rules for implementing the Basel standard on capital requirements for banks’ equity investments in funds in Hong Kong.
ESRB published an opinion assessing the decision of Swedish Financial Supervisory Authority (FSA) to extend the application period of a stricter measure for residential mortgage lending, in accordance with Article 458 of the Capital Requirements Regulation (CRR).