MAS published amendments to the Notice 652 on net stable funding ratio (NSFR) and Notice 656 on exposures to single counterparty groups for banks incorporated in Singapore. MAS Notice 652 (Amendment No. 2) 2019 reflects amendments to clarify the available stable funding factor applicable to operational deposits that are fully covered by deposit insurance. The amendments to Notice 652 shall take effect on December 31, 2019. MAS Notice 656 (Amendment) 2019 reflects amendments to clarify the scope of exemption for intraday exposures to a bank and to clarify the treatment of exposures arising from covered bonds issued by a bank or mortgage institution through a special purpose vehicle. The amendments to Notice 656 shall take effect on October 01, 2020.
Notice 652 applies to all domestic systemically important banks, or D-SIBs, and internationally active banks. The notice sets out the minimum all currency NSFR requirements that a bank must comply with. Notice 656 applies to all locally incorporated banks and sets out the limits on exposures of a reporting bank to a single counterparty group, the types of exposures to be included in or excluded from those limits, the basis for computation of exposures, the eligible credit risk mitigation techniques, and the approach for aggregation of exposures.
Effective Date: December 31, 2019 (Notice 652); October 01, 2020 (Notice 656)
Keywords: Asia Pacific, Singapore, Banking, MAS Notice 652, MAS Notice 656, D-SIBs, NSFR, SCCL, Counterparty Credit Risk, Credit Risk, Liquidity Risk, Reporting, Basel III, MAS
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.
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.
The Australian Prudential Regulation Authority (APRA) released the final Prudential Practice Guide on management of climate change financial risks (CPG 229) for banks, insurers, and superannuation trustees.
The European Banking Authority (EBA) Single Rulebook Question and Answer (Q&A) tool updates for this month include answers to 10 questions.
The European Commission, or EC, finalized the Implementing Regulation 2021/2017 with respect to the benchmark portfolios, reporting templates, and reporting instructions for the supervisory benchmarking of internal approaches for calculating own funds requirements.
The European Commission (EC) has adopted a package of measures related to the Capital Markets Union.
The European Council adopted its position on two proposals that are part of the digital finance package adopted by the European Commission in September 2020, with one of the proposals involving the regulation on markets in crypto-assets (MiCA) and the other involving the Digital Operational Resilience Act (DORA).
The Prudential Regulation Authority (PRA) is proposing, via the consultation paper CP21/21, to apply group provisions in the Operational Resilience Part of the PRA Rulebook (relevant for the Capital Requirements Regulation or CRR firms) to holding companies.