MAS announced that it will award Significantly Rooted Foreign Bank (SRFB) privileges to Standard Chartered Bank (Singapore) Limited, allowing it to operate additional places of business. With effect from August 03, 2020, Standard Chartered Bank (Singapore) Limited will be able to operate up to 50 places of business. In addition, MAS announced that it will enhance the SRFB framework to grant, in the future, an SRFB that substantially exceeds the criteria for significant rootedness in Singapore additional privileges, including the ability to establish a separate subsidiary to develop alternative business models.
Under the SRFB framework, which was announced in 2012, qualifying full banks that are significantly rooted in Singapore and from jurisdictions that have a Free Trade Agreement with Singapore are allowed to establish up to 50 places of business, of which up to 35 may be branches. MAS assesses the "significant rootedness" on the basis of a range of quantitative and qualitative attributes. Standard Chartered Bank (Singapore) Limited is the first qualifying full bank to qualify for SRFB privileges under the EU-Singapore Free Trade Agreement commitments.
Under the enhanced SRFB Framework, MAS will consider granting an additional full bank license to an SRFB that substantially exceeds the SRFB baseline criteria. This will provide the SRFB with the same flexibility as Singapore-incorporated banking groups to establish subsidiaries, including with joint-venture partners, to operate new or alternative business models such as a digital-only bank. The enhanced SRFB Framework will strengthen the ability of SRFBs to complement local banks as anchors to the financial system in Singapore. To determine if an SRFB substantially exceeds the baseline criteria, MAS will consider a range of additional attributes of rootedness in Singapore. These include full subsidiarization of banking business operations in Singapore; significant proportion of global key appointment holders and business heads based in Singapore; and firm commitment to the financial stability and development of Singapore in the long term. SRFB privileges, including the award of the additional full bank license, will continue to be offered only under Singapore’s Free Trade Agreements that contain SRFB commitments.
Keywords: Asia Pacific, Singapore, Banking, Foreign Banks, SRFB Framework, Standard Chartered, Significantly Rooted Foreign Bank, MAS
Previous ArticleGLEIF Introduces Enhanced Functionalities in LEI Search Tool
APRA issued a letter on the loss-absorbing capacity (LAC) requirements for domestic systemically important banks (D-SIBs) and published a discussion paper, along with the proposed the prudential standards on financial contingency planning (CPS 190) and resolution planning (CPS 900).
The European Commission (EC) launched a call for evidence, until March 18, 2022, as part of a comprehensive review of the macro-prudential rules for the banking sector under the Capital Requirements Regulation (CRR) and Directive (CRD IV).
The Financial Stability Board (FSB) published a report that sets out good practices for crisis management groups.
The Australian Prudential Regulation Authority (APRA) found that Heritage Bank Limited had incorrectly reported capital because of weaknesses in operational risk and compliance frameworks, although the bank did not breach minimum prudential capital ratios at any point and remains well-capitalized.
The Office of the Superintendent of Financial Institutions (OSFI) released the annual report for 2020-2021.
Through a letter addressed to the banking sector entities, the Office of the Superintendent of Financial Institutions (OSFI) announced deferral of the domestic implementation of the final Basel III reforms from the first to the second quarter of 2023.
EIOPA recently published a letter in which EC is informing the European Parliament and Council that it could not adopt the set of draft regulatory technical standards for disclosures under the Sustainable Finance Disclosure Regulation (SFDR) within the stipulated three-month period, given their length and technical detail.
The Financial Conduct Authority (FCA) published the third in a series of policy statements that set out rules to introduce the UK Investment Firm Prudential Regime (IFPR), which will take effect on January 01, 2022.
The Australian Prudential Regulation Authority (APRA) published, along with a summary of its response to the consultation feedback, an information paper that summarizes the finalized capital framework that is in line with the internationally agreed Basel III requirements for banks.
The Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) issued a consultative report focusing on access to central counterparty (CCP) clearing and client-position portability.