MAS Amends Notice on Related Party Transactions of Banks
MAS amended Notice 643A that addresses requirements for banks to prepare statements of exposures and credit facilities to related concerns or parties. Appendix 1 of the notice contains the form each bank must use to prepare a quarterly statement under section 27(1) of the Banking Act (Cap. 19) while Appendix 2 provides instructions or explanatory notes for completing the statement. The amended notice takes effect on July 01, 2021, a date on which the MAS Notice 639A dated June 06, 2007 is being cancelled.
Notice 643A states that every bank must maintain detailed records of every credit facility from and exposure of the bank or any branch or entity in its banking group with any related concern. A bank must report all its transactions, exposures, and credit facilities in SGD. Every bank incorporated in Singapore that is not a subsidiary of another bank incorporated in Singapore must prepare an additional statement in the form set out in Table 1 of Appendix 1, at the consolidated level. Bank must prepare this statement by aggregating its credit facilities and exposures respectively to each related-party group with that of all its subsidiaries and any other entity treated as part of the bank’s group of entities according to Accounting Standards. For the purposes of reporting under Table 1 of Appendix 1, a bank in Singapore may regard the person as belonging to one or more related party groups. Where a person belongs to more than one related party group, the bank must in relation to such a person report the following under the “Additional Information” section:
- All the related party groups which the person belongs to
- The number of related party group(s) that the bank regards the person as belonging to, for the purposes of this notice
- Where the bank has regarded the person as belonging to only one related party group, whether the bank has previously regarded the person as belonging to another related party group and the reasons why the bank no longer regards the person as belonging to that related party group
Effective Date: July 01, 2021
Keywords: Asia Pacific, Singapore, Banking, Credit Risk, Reporting, Notice 643A, Related Party Transactions, Concentration Risk, Counterparty Credit Risk, MAS
Featured Experts
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
Scott Dietz
Scott is a Director in the Regulatory and Accounting Solutions team responsible for providing accounting expertise across solutions, products, and services offered by Moody’s Analytics in the US. He has over 15 years of experience leading auditing, consulting and accounting policy initiatives for financial institutions.
Related Articles
EBA Finalizes Templates for One-Off Climate Risk Scenario Analysis
The European Banking Authority (EBA) has published the final templates, and the associated guidance, for collecting climate-related data for the one-off Fit-for-55 climate risk scenario analysis.
EBA Mulls Inclusion of Environmental & Social Risks to Pillar 1 Rules
The European Banking Authority (EBA) recently published a report that recommends enhancements to the Pillar 1 framework, under the prudential rules, to capture environmental and social risks.
BCBS Consults on Disclosure of Crypto-Asset Exposures of Banks
As a follow on from its prudential standard on the treatment of crypto-asset exposures, the Basel Committee on Banking Supervision (BCBS) proposed disclosure requirements for crypto-asset exposures of banks.
BCBS and EBA Publish Results of Basel III Monitoring Exercise
The Basel Committee on Banking Supervision (BCBS) and the European Banking Authority (EBA) have published results of the Basel III monitoring exercise.
PRA Updates Timeline for Final Basel III Rules, Issues Other Updates
The Prudential Regulation Authority (PRA) recently issued a few regulatory updates for banks, with the updated Basel implementation timelines being the key among them.
US Treasury Sets Out Principles for Net-Zero Financing
The U.S. Department of the Treasury has recently set out the principles for net-zero financing and investment.
EC Launches Survey on G7 Principles on Generative AI
The European Commission (EC) launched a stakeholder survey on the draft International Guiding Principles for organizations developing advanced artificial intelligence (AI) systems.
ISSB Sustainability Standards Expected to Become Global Baseline
The finalization of the two sustainability disclosure standards—IFRS S1 and IFRS S2—is expected to be a significant step forward in the harmonization of sustainability disclosures worldwide.
IOSCO, BIS, and FSB to Intensify Focus on Decentralized Finance
Decentralized finance (DeFi) is expected to increase in prominence, finding traction in use cases such as lending, trading, and investing, without the intermediation of traditional financial institutions.
BCBS Assesses NSFR and Large Exposures Rules in US
The Basel Committee on Banking Supervision (BCBS) published reports that assessed the overall implementation of the net stable funding ratio (NSFR) and the large exposures rules in the U.S.
