Featured Product

    MAS to Consolidate Regulation of Merchant Banks Under Banking Act

    May 21, 2019

    MAS published a consultation paper that proposes to consolidate the regulation of merchant banks under the Banking Act and to move merchant banks to a licensing regime under the MAS Act. Comment period on this consultation ends on June 19, 2019.

    MAS, in June 2015, had announced that it will remove the divide between the Domestic Banking Unit (DBU) and the Asian Currency Unit (ACU). Banks and merchant banks will no longer need to maintain two separate accounting units with effect from October 01, 2020. MAS subsequently conducted a closed consultation with merchant banks in February 2019, on the proposed consequential amendments to merchant banks’ regulatory requirements, following the removal of the DBU-ACU divide. MAS is considering the feedback received and will incorporate it into the relevant provisions, where appropriate. 

    In this consultation, MAS has proposed to consolidate the regulation of merchant banks under the Banking Act, upon removal of the DBU-ACU divide. The existing bank directives and notices, which have been issued under section 28 of the MAS Act, will accordingly be replaced by the proposed Banking Act provisions as well as regulations and notices issued under the Banking Act. The consolidation of merchant bank regulation under the Banking Act is not intended to introduce new requirements or modify existing ones, except for changes that have been previously communicated or under consultation with the merchant banks.

    MAS also proposed to move merchant banks to a licensing regime from the current approval framework under MAS Act. A licensing regime is appropriate as, like banks, merchant banks are subject to a formal set of prudential requirements. Under the proposed licensing regime, regulatory requirements for merchant banks will continue to be calibrated to reflect the different business models and activities of merchant banks compared to banks.


    Comment Due Date: June 19, 2019

    Keywords: Asia Pacific, Singapore, Banking, Banking Act, Licensing, MAS Act, MAS

    Related Articles
    News

    EBA Analyzes Impact of Unwind Mechanism of Liquidity Coverage Ratio

    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.

    November 19, 2020 WebPage Regulatory News
    News

    ECB Outlines Views on Possible Changes to AnaCredit Rule and TLTROs

    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.

    November 19, 2020 WebPage Regulatory News
    News

    IASB Begins First Phase of Post-Implementation Review of IFRS 9

    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.

    November 18, 2020 WebPage Regulatory News
    News

    FSB Report Examines Progress in Resolvability of Systemic Institutions

    FSB published a report that examines progress in implementing policy measures to enhance the resolvability of systemically important financial institutions.

    November 18, 2020 WebPage Regulatory News
    News

    EBA Benchmarks National Insolvency Frameworks Across EU

    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.

    November 18, 2020 WebPage Regulatory News
    News

    FSB Reports Assess Impact of Pandemic on Financial Stability

    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.

    November 17, 2020 WebPage Regulatory News
    News

    RBNZ Consults on Implementation of Capital Review Changes

    RBNZ launched a consultation on the details for implementing the final Capital Review decisions announced in December 2019.

    November 17, 2020 WebPage Regulatory News
    News

    IASB Announces Andreas Barckow as the New Chair from July 2021

    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.

    November 17, 2020 WebPage Regulatory News
    News

    HKMA Consults on Capital Rules for Bank Equity Investments in Funds

    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.

    November 17, 2020 WebPage Regulatory News
    News

    ESRB Supports Extension of Macro-Prudential Measure by Swedish FSA

    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).

    November 17, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 6153