MAS published amendments to Notices 632B, 645A, 825B, 831A, 1106B, and 1115A related to the residential property loans in Singapore. Additionally, MAS published amendments to Notices 642 and 1113 related to motor vehicle loans, along with amendments to Notices 635, 827, and 1109 related to unsecured credit facilities to individuals. The amendments shall take effect on May 06, 2020. Notices 825B, 827, and 831A apply to all finance companies in Singapore; Notices 632B, 635, 642, and 645A apply to all banks in Singapore; and Notices 1106B, 1109, 1113, and 1115A apply to all merchant banks in Singapore.
Notice 632B sets out the rules for banks when granting residential property loans, including limits on loan amount, conditions for loans, and tenure of credit and refinancing facilities. Notice 825B sets out the requirements for finance companies to comply with when granting new and refinanced residential property loans, including loan-to-value (LTV) limits and loan tenure rules. Notice 1106B sets out rules for merchant banks when granting residential property loans to individuals and non-individuals. Notices 645A, 831A, and 1115A set out requirements on computing the total debt servicing ratio (TDSR) for property loans for banks, finance companies, and merchant banks, respectively. Notices 642 and 1113 set out rules for banks and merchant banks, respectively, when granting motor vehicle loans to individuals, including loan tenure and LTV limits. Notices 635, 827, and 1109 set out requirements on granting an unsecured non-card credit facility to an individual for banks, finance companies, and merchant banks, respectively.
Effective Date: May 06, 2020
Keywords: Asia Pacific, Singapore, Banking, Securities, Residential Property Loans, Merchant Banks, Debt Service Ratio, LTV, MAS
Previous ArticleUS Agencies Extend Submission Dates for Resolution Plans of Banks
The European Commission (EC) announced plans to defer the application of 13 regulatory technical standards under the Sustainable Finance Disclosure Regulation (2019/2088) by six months, from January 01, 2022 to July 01, 2022.
The Bank of England (BoE) published a consultation paper on approach to setting minimum requirement for own funds and eligible liabilities (MREL), an operational guide on executing bail-in, and a statement from the Deputy Governor Dave Ramsden.
The European Banking Authority (EBA) is seeking preliminary input on standardization of the proportionality assessment methodology for credit institutions and investment firms.
Certain regulatory authorities in the US are extending period for completion of the review of certain residential mortgage provisions and for publication of notice disclosing the determination of this review until December 20, 2021.
The Prudential Regulation Authority (PRA) published the policy statement PS18/21, which introduces an amendment in the definition of "higher paid material risk taker" in the Remuneration Part of the PRA Rulebook.
The European Banking Authority (EBA) published its annual report on asset encumbrance in banking sector.
The European Banking Authority (EBA) published a methodological guide to mystery shopping.
The Australian Prudential Regulation Authority (APRA) released a letter to authorized deposit-taking institutions to provide an update on key policy settings for the capital framework reforms, which will come into effect from January 01, 2023.
The Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) published a report that assesses the business continuity planning activities of financial market infrastructures or FMIs.
The European Securities and Markets Authority (ESMA) has responded to the IFRS consultation on targeted amendments to the IFRS Foundation constitution to accommodate an International Sustainability Standards Board (ISSB) to set IFRS Sustainability Standards.