Featured Product

    MAS Outlines Measures to Target Accessibility for SMEs Under GSLS

    January 04, 2021

    MAS published response to a question asked in the Parliament on measures to target small and medium-size enterprise (SME) awareness and accessibility under the Green and Sustainability-Linked Loan Grant Scheme (GSLS). The response states that the GSLS has a track that encourages banks to develop green and sustainability-linked loan frameworks, which will have to include eligibility criteria that are verified against internationally recognized green and sustainability-linked loan principles. This removes the need for SMEs to develop their own customized frameworks before obtaining a green or sustainability-linked loan, and reduces the friction SMEs face in accessing such loans. HSBC and OCBC have launched such green and sustainability-linked loan frameworks for SMEs.

    GSLS aims to support companies of all sizes, including SMEs. MAS will defray up to SGD 100,000 of the expenses incurred by borrowers in engaging independent service providers to verify the green and sustainability credentials of such loans. While the GSLS supports the adoption of such loans, MAS recognizes that the cost, time, and effort of procuring the necessary sustainability advisory and assessment services may not be commensurate with the loan quantum, particularly for smaller SMEs. The GSLS, therefore, has the track that encourages banks to develop green and sustainability-linked loan frameworks. Under this track, MAS provides greater funding support to banks when they develop loan frameworks that are targeted at SMEs. Expenses incurred by banks to develop, verify, and report on the green and sustainability credentials of loan frameworks targeted at SMEs will be defrayed by 90%, compared with 60% of expenses for other green and sustainability-linked loan frameworks. MAS expects to support more banks in developing such frameworks under the GSLS. To promote awareness and encourage take-up of the GSLS, MAS is partnering with Enterprise Singapore (ESG) and banks to reach out to SMEs.

     

    Keywords: Asia Pacific, Singapore, Banking, GSLS, Sustainable Finance, ESG, SME, Credit Risk, MAS

    Related Articles
    News

    FINMA Approves Merger of Credit Suisse and UBS

    The Swiss Financial Market Supervisory Authority (FINMA) has approved the takeover of Credit Suisse by UBS.

    March 21, 2023 WebPage Regulatory News
    News

    BOE Sets Out Its Thinking on Regulatory Capital and Climate Risks

    The Bank of England (BOE) published a working paper that aims to understand the climate-related disclosures of UK financial institutions.

    March 13, 2023 WebPage Regulatory News
    News

    OSFI Finalizes on Climate Risk Guideline, Issues Other Updates

    The Office of the Superintendent of Financial Institutions (OSFI) is seeking comments, until May 31, 2023, on the draft guideline on culture and behavior risk, with final guideline expected by the end of 2023.

    March 12, 2023 WebPage Regulatory News
    News

    APRA Assesses Macro-Prudential Policy Settings, Issues Other Updates

    The Australian Prudential Regulation Authority (APRA) published an information paper that assesses its macro-prudential policy settings aimed at promoting stability at a systemic level.

    March 07, 2023 WebPage Regulatory News
    News

    BIS Paper Examines Impact of Greenhouse Gas Emissions on Lending

    BIS issued a paper that investigates the effect of the greenhouse gas, or GHG, emissions of firms on bank loans using bank–firm matched data of Japanese listed firms from 2006 to 2018.

    March 03, 2023 WebPage Regulatory News
    News

    HMT Mulls Alignment of Ring-Fencing and Resolution Regimes for Banks

    The HM Treasury (HMT) is seeking evidence, until May 07, 2023, on practicalities of aligning the ring-fencing and the banking resolution regimes for banks.

    March 02, 2023 WebPage Regulatory News
    News

    MFSA Sets Out Supervisory Priorities, Issues Reporting Updates

    The Malta Financial Services Authority (MFSA) outlined its supervisory priorities for 2023

    March 02, 2023 WebPage Regulatory News
    News

    German Regulators Issue Multiple Reporting Updates for Banks

    Deutsche Bundesbank published the nationally deactivated validation rules for the German Commercial Code (HGB) users on the taxonomy 3.2, which became valid from December 31, 2022

    March 02, 2023 WebPage Regulatory News
    News

    BCBS Report Examines Impact of Basel III Framework for Banks

    The Basel Committee on Banking Supervision (BCBS) published results of the Basel III monitoring exercise based on the June 30, 2022 data.

    February 28, 2023 WebPage Regulatory News
    News

    PRA Consults on Prudential Rules for "Simpler-Regime" Firms

    Among the recent regulatory updates from UK authorities, a key development is the first-phase consultation, from the Prudential Regulation Authority (PRA), on simplifications to the prudential framework that would apply to the simpler-regime firms.

    February 28, 2023 WebPage Regulatory News
    RESULTS 1 - 10 OF 8806