MAS published amendments to Notice 648 on the issuance of covered bonds by banks incorporated in Singapore. Notice 648 sets out the requirements that banks must comply with when issuing covered bonds. These include cover pool assets and encumbrance limit, risk management requirements, and notification requirements. The amendments to this notice raise the encumbrance limit from 4% to 10% and clarify the requirements for banks’ computation of their total assets. MAS Notice 648 (Amendment) 2020 has been issued pursuant to section 55 of the Banking Act (Cap. 19) and shall take effect on October 16, 2020.
In this notice, “covered bonds” means any bonds, notes, or other debentures issued by a bank or a special purpose vehicle where payment of the liabilities to the holders of such covered bonds and any liabilities arising from the enforcement of the rights of the holders of the covered bonds are secured by a cover pool and are recoverable from the bank, regardless of whether the cover pool is sufficient to pay off such liabilities. Only a bank incorporated in Singapore may issue covered bonds in Singapore. A bank incorporated outside Singapore must not issue any covered bonds through its branch in Singapore. A bank incorporated in Singapore must furnish to MAS, at least one month prior to the issuance of covered bonds, information on its covered bond program in writing, including the type of assets that will be included in the cover pool under the covered bond program and sign-off from its board and senior management on the covered bond program. The bank must provide, at the minimum, information on the size, tenure, and terms of the issuance and the amount of assets used to back the covered bonds.
Effective Date: October 16, 2020
Keywords: Asia Pacific, Singapore, Banking, Securities, Covered Bonds, Notice 648, Special Purpose Vehicle, MAS
Previous ArticleHM Treasury Updates Statutory Instruments Under EU Withdrawal Act
FED proposed three-year extension, without revision, of the information collection FR 4202, titled "Recordkeeping Provisions Associated with Stress Testing Guidance."
FCA updated the draft guidance for firms to ensure that mortgage customers whose homes may be repossessed are treated fairly and appropriately, particularly where there are risks of harm to customers who are vulnerable as a result of the COVID-19 pandemic.
FCA issued a statement on the cessation or loss of representativeness of the 35 LIBOR benchmark settings published by ICE Benchmark Administration or IBA.
EBA published a package that includes the final draft implementing technical standards on supervisory reporting and disclosures of investment firms.
BIS published a paper that provides an overview on the use of big data and machine learning in the central bank community.
APRA finalized the reporting standard ARS 115.0 on capital adequacy with respect to the standardized measurement approach to operational risk for authorized deposit-taking institutions in Australia.
ECB published a guide that outlines the principles and methods for calculating the penalties for regulatory breaches of prudential requirements by banks.
MAS and The Association of Banks in Singapore (ABS) jointly issued a paper that sets out good practices for the management of operational and other risks stemming from new work arrangements adopted by financial institutions amid the COVID-19 pandemic.
ACPR announced that a new data collection application, called DLPP (Datalake for Prudential), for collecting banking and insurance prudential data will go into production on April 12, 2021.
BCB announced that the Financial Stability Committee decided to maintain the countercyclical capital buffer (CCyB) for Brazil at 0%, at least until the end of 2021.