MAS Proposes Revision to Scope of Eligible Collateral in Notice 637

MAS Notice 637 addresses risk-based capital adequacy requirements for banks incorporated in Singapore. MAS has proposed the following amendments:

• Recognize commodities as eligible physical collateral for banks using the foundation internal ratings-based approach for credit risk.
• Widen the scope of eligible equity securities to those listed on any regulated exchange (that is, an exchange regulated by MAS or other financial services regulatory authority).
• In relation to eligible equity securities included in a main index that qualify for a 15% haircut, clarify the definition of main index as one which is referenced by futures or options traded on a regulated exchange.

Comment Due Date: January 19, 2018

Keywords: Asia Pacific, Singapore, Banking, Commodities, MAS Notice 637, Capital Adequacy, Credit Risk, MAS