MAS Consults on Implementation of Final Basel III Reforms in Singapore
MAS proposed revisions to the risk-based capital requirements and leverage ratio requirements for banks incorporated in Singapore. These revisions 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). Comment period on the consultation ends on July 08, 2019 and MAS proposed to implement the revisions from January 01, 2022.
In the consultation document, MAS sets out its policy proposals for implementation of specific aspects of the Basel III reforms:
- MAS intends to adopt the revised credit risk framework, market risk framework, and operational risk framework with proposals on the exercise of national discretions.
- MAS proposes to adopt the phase-in arrangement of BCBS for the output floor calibration.
- MAS proposes to require derivative exposures to be measured in the leverage ratio exposure measure, using the modified standardized approach for measuring counterparty credit risk exposures (SA-CCR), from January 01, 2022. This will harmonize the measurement of derivative exposures between the leverage ratio and the risk-based framework, which will improve the effectiveness of the leverage ratio as a backstop to the risk-based capital requirements
- MAS also proposes to allow banks the option to adopt the modified SA-CCR for calculation of their leverage ratio earlier than January 01, 2022, conditional on their simultaneous or prior adoption of the SA-CCR under the risk-based framework.
Comment Due Date: July 08, 2019
Effective Date: January 01, 2022 (Proposed)
Keywords: Asia Pacific, Singapore, Banking, Basel III, Credit Risk, Market Risk, Operational Risk, Output Floor, Leverage Ratio, Capital Requirements, MAS
Featured Experts
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Pierre-Etienne Chabanel
Brings expertise in technology and software solutions around banking regulation, whether deployed on-premises or in the cloud.
Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
Previous Article
IFSB Consults on Guidance Note for Shariah-Compliant LOLR FacilitiesNext Article
EIOPA Updates Q&A on Regulations in May 2019Related Articles
FED Revises Capital Planning and Stress Testing Requirements for Banks
FED finalized a rule that updates capital planning requirements to reflect the new framework from 2019 that sorts large banks into categories, with requirements that are tailored to the risks of each category.
ECB Releases Results of Bank Lending Survey for Fourth Quarter of 2020
ECB published results of the quarterly lending survey conducted on 143 banks in the euro area.
ESAs Publish Reporting Templates for Financial Conglomerates
ESAs published the final draft implementing technical standards on reporting of intra-group transactions and risk concentration of financial conglomerates subject to the supplementary supervision in EU.
EBA Publishes Report on Asset Encumbrance of Banks in EU
EBA published the annual report on asset encumbrance of banks in EU.
MAS Revises Guidelines on Technology Risk Management
MAS revised the guidelines that address technology and cyber risks of financial institutions, in an environment of growing use of cloud technologies, application programming interfaces, and rapid software development.
US Agencies Publish Updates for Call Reports, FFIEC 101, and FR Y-9C
FED updated the reporting form and instructions for the FR Y-9C report on consolidated financial statements for holding companies.
EBA Proposes Guidelines for Establishing Intermediate Parent Entities
EBA issued a consultation paper on the guidelines on monitoring of the threshold and other procedural aspects of the establishment of intermediate EU parent undertakings, or IPUs, as laid down in the Capital Requirements Directive.
EC Adopts Financial Reporting Changes Arising from Benchmark Reforms
EC published Regulation 2021/25 that addresses amendments related to the financial reporting consequences of replacement of the existing interest rate benchmarks with alternative reference rates.
BIS Bulletin Examines Key Elements of Policy Response to Cyber Risk
BIS published a bulletin, or a note, that examines the cyber threat landscape in the context of the pandemic and discusses policies to reduce risks to financial stability.
HMT Updates List of Post-Brexit Equivalence Decisions in UK
HM Treasury, also known as HMT, has updated the table containing the list of the equivalence decisions that came into effect in UK at the end of the transition period of its withdrawal from EU.
