Featured Product

    MAS Updates Housing Loan Rules, Proposes Corporate Governance Guidance

    May 10, 2021

    MAS updated rules for new housing loans by banks and finance companies. The rules cover borrower-mortgagor and guarantor-borrower requirements, loan tenure and loan-to-value limits, and requirements for the Mortgage Servicing Ratio and the Total Debt Servicing Ratio. MAS also published a consultation paper on revisions to the guidelines on corporate governance for designated financial holding companies, banks, direct insurers, reinsurers and captive insurers incorporated in Singapore. Annex C to the paper sets out the proposed revisions, which take into account international standards and industry good practices; this consultation closes on June 18, 2021.

    The guidelines on corporate governance comprise the principles and provisions of the Code of Corporate Governance and additional guidelines for locally incorporated institutions. As MAS will be updating the Corporate Governance Guidelines to replace the 2012 Corporate Governance Code with the 2018 version, consequential amendments arising from the differences in the 2018 Corporate Governance Code will be necessary to the additional guidelines within the Corporate Governance Guidelines. Tables B1 to B3 of Annex B set out these amendments. MAS will also be streamlining the additional guidelines to remove expectations that are already contained within the Corporate Governance Regulations and MAS’ Guidelines on Risk Management. The proposed amendments to the additional guidelines are set out in Table B4 of Annex B.

    MAS will expect locally incorporated banks, Tier 1 insurers, and designated financial holding companies that own banks or Tier 1 insurers to fully observe the principles of the Corporate Governance Code contained within the Corporate Governance Guidelines. Deviations from Principles 11 and 12 under the sub-section “Shareholder Rights and Engagement” of the Corporate Governance Code are acceptable if they are not relevant in the context of the ownership structure of non-listed financial institutions. For instance, Principles 11 and 12 may not be relevant to financial institutions that are wholly owned by a single parent entity. Where locally incorporated banks, Tier 1 insurers, and designated financial holding companies which own banks or Tier 1 insurers do not observe Principles 11 and 12, this should be explained in their annual reports (for listed financial institutions) or company websites (for non-listed financial institutions).

    Comment Due Date: June 18, 2021

    Keywords: Asia Pacific, Singapore, Banking, Mortgage Servicing Ratio, Total Debt Servicing Ratio, Credit Risk, RRE, Governance, MAS

    Related Articles
    News

    ESAs Issue Multiple Regulatory Updates for Financial Sector Entities

    The three European Supervisory Authorities (ESAs) issued a letter to inform about delay in the Sustainable Finance Disclosure Regulation (SFDR) mandate, along with a Call for Evidence on greenwashing practices.

    November 15, 2022 WebPage Regulatory News
    News

    ISSB Makes Announcements at COP27; IASB to Propose IFRS 9 Amendments

    The International Sustainability Standards Board (ISSB) of the IFRS Foundations made several announcements at COP27 and with respect to its work on the sustainability standards.

    November 10, 2022 WebPage Regulatory News
    News

    IOSCO Prioritizes Green Disclosures, Greenwashing, and Carbon Markets

    The International Organization for Securities Commissions (IOSCO), at COP27, outlined the regulatory priorities for sustainability disclosures, mitigation of greenwashing, and promotion of integrity in carbon markets.

    November 09, 2022 WebPage Regulatory News
    News

    EBA Finalizes Methodology for Stress Tests, Issues Other Updates

    The European Banking Authority (EBA) issued a statement in the context of COP27, clarified the operationalization of intermediate EU parent undertakings (IPUs) of third-country groups

    November 09, 2022 WebPage Regulatory News
    News

    OSFI Sets Out Work Priorities and Reporting Updates for Banks

    The Office of the Superintendent of Financial Institutions (OSFI) published an annual report on its activities, a report on forward-looking work.

    November 07, 2022 WebPage Regulatory News
    News

    APRA Finalizes Changes to Capital Framework, Issues Other Updates

    The Australian Prudential Regulation Authority (APRA) finalized amendments to the capital framework, announced a review of the prudential framework for groups.

    November 03, 2022 WebPage Regulatory News
    News

    BIS Hub and Central Banks Conduct CBDC and DeFI Pilots

    The Bank for International Settlements (BIS) Innovation Hubs and several central banks are working together on various central bank digital currency (CBDC) pilots.

    November 03, 2022 WebPage Regulatory News
    News

    ECB Sets Deadline for Banks to Meet Its Climate Risk Expectations

    The European Central Bank (ECB) published the results of its thematic review, which shows that banks are still far from adequately managing climate and environmental risks.

    November 02, 2022 WebPage Regulatory News
    News

    ESAs, ECB, & EC Issue Multiple Regulatory Updates for Financial Sector

    Among its recent publications, the European Banking Authority (EBA) published the final standards and guidelines on interest rate risk arising from non-trading book activities (IRRBB)

    October 31, 2022 WebPage Regulatory News
    News

    EC Adopts Final Rules Under CRR, BRRD, and Crowdfunding Regulation

    The European Commission (EC) recently adopted regulations with respect to the calculation of own funds requirements for market risk, the prudential treatment of global systemically important institutions (G-SIIs)

    October 26, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8582