MAS published an explanatory brief on the Banking (Amendment) Bill 2019. The brief highlights that the Minister for National Development and the Second Minister for Finance, Mr Lawrence Wong, on behalf of Mr. Tharman Shanmugaratnam, Senior Minister and Minister-in-charge of MAS, moved the Bill for First Reading in Parliament. This round of Banking Act amendments will significantly rationalize the banking regulation by removing the divide between the Domestic Banking Unit (DBU) and the Asian Currency Unit (ACU) and will consolidate the licensing and regulation of merchant banks under the Banking Act.
MAS had consulted the industry and public on the significant policy changes and draft legislative amendments for banks and merchant banks in February 2019 and May 2019, respectively. Feedback from the consultations was largely supportive. MAS has made refinements, where appropriate, in finalizing the Bill. As part of the key amendments, the Bill will:
- Remove the DBU-ACU divide and make corresponding consequential amendments to the relevant provisions in the Banking Act
- Introduce a new Part VIIB to set out the licensing regime for merchant banks, clarify their permitted scope of activities, stipulate applicable prudential requirements, and provide to MAS the regulatory and supervisory powers over merchant banks
- Expand the grounds for MAS to revoke bank licenses
- Provide MAS with new powers in the Banking Act to strengthen its supervisory oversight of relevant services such as the outsourcing arrangements of banks and merchant banks
Keywords: Asia Pacific, Singapore, Banking, Banking (Amendment) Bill 2019, Banking Act, Licensing, Merchant Banks, MAS
Previous ArticleIOSCO Issues Statement on Emerging Global Stablecoin Proposals
FCA and PRA in the UK, FED in the US, and the authorities in Singapore have fined Goldman Sachs for risk management failures in connection with the 1Malaysia Development Berhad (1MDB).
BCBS announced that OSFI and the Bank of Canada hosted the 21st International Conference of Banking Supervisors (ICBS) virtually on October 19-22, 2020.
FCA proposed guidance on how firms should continue to seek to help customers who hold insurance and premium finance products and may be in financial difficulty because of COVID-19, after October 31, 2020.
EBA issued an opinion on prudential treatment of the legacy instruments as the grandfathering period nears an end on December 31, 2021.
ESRB published the fifth issue of the EU Non-bank Financial Intermediation Risk Monitor 2020 (NBFI Monitor).
HM Treasury announced that the new Financial Services Bill has been introduced in the Parliament.
APRA announced that it has increased the minimum liquidity requirement of Bendigo and Adelaide Bank for failing to comply with the prudential standard on liquidity.
PRA published the consultation paper CP17/20 to propose changes to certain rules, supervisory statements, and statements of policy to implement elements of the Capital Requirements Directive (CRD5).
US Agencies adopted a final rule that applies to advanced approaches banking organizations and aims to reduce interconnectedness in the financial system as well as to reduce contagion risks associated with the failure of a global systemically important bank (G-SIB).
US Agencies (FDIC, FED, and OCC) adopted a final rule that implements the net stable funding ratio (NSFR) for certain large banking organizations.