MAS published amendments to the Notice 652 on net stable funding ratio (NSFR), along with the related reporting template. MAS also amended Notices 632 and 656 in relation to exposures to single counterparty groups, Notice 643 on transactions with related parties, and Notice 607 on information that all banks in Singapore are required to include in their publication of annual financial statements. The amendments shall take effect on October 01, 2020.
MAS Notice 652 (Amendment No. 2) 2020 reflects amendments made to Notice 652 as a result of the commencement of section 10 of the Banking (Amendment) Act 2020 on October 01, 2020. Section 10 of the Banking (Amendment) Act 2020 inserts a new section 10C to the Banking Act (Cap. 19) on Stable Funding Requirement. Notice 652 sets out the minimum all-currency NSFR requirements for bank compliance and it applies to all domestic systemically important banks and internationally active banks. Notice 643, which applies to all banks, sets out the definition, scope, and general principles governing transactions with related parties, along with the responsibilities of banks to maintain oversight and control over their related party transactions.
MAS Notice 639 (Amendment) 2020 reflects amendments made to the Notice 639 to apply it to only banks incorporated in Singapore. MAS Notice 656 (Amendment) 2020 reflects amendments to Notice 656 as a result of the amendments to the Banking Act (Cap. 19) set out in the Banking (Amendment) Act 2020 as well as to delay the effective date of the Notice to July 01, 2021. Notice 639 applies to all banks in Singapore while Notice 656 applies to all locally incorporated banks. Notices 639 and 656 set out the limits on exposure of a bank to a single counterparty group, types of exposures to include or exclude from those limits, basis for computing and aggregating exposures, recognition of credit risk mitigation, and approach for aggregation of exposures.
Effective Date: October 01, 2020
Keywords: Asia Pacific, Singapore, Banking, MAS Notice 652, MAS Notice 656, MAS Notice 639, D-SIBs, NSFR, Counterparty Credit Risk, Credit Risk, Liquidity Risk, Reporting, Basel, MAS
Previous ArticleEC Publishes Action Plan for Capital Markets Union in EU
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 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.
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.
EBA published an erratum for technical package on phase 1 of the reporting framework 3.0.
APRA updated a frequently asked question (FAQ), for authorized deposit-taking institutions, on the measurement of credit risk weighted assets.
EBA published the quarterly risk dashboard, along with the results of the Risk Assessment Questionnaire survey among 60 banks and 15 market analysts.
ECB concluded the public consultation on the introduction of a digital euro in EU.
ECB published a guide that sets out the supervisory approach to consolidation in the banking sector.
The SRB Chair Elke König published an article setting out work priorities for 2021.
FDIC has selected 11 technology companies—including BearingPoint, Fed Reporter, Inc, and S&P Global Market Intelligence, LLC—for inclusion in the third and final phase of the rapid prototyping competition.