MAS published Notice 654 and guidelines to Notice 654 on the requirements that a notified bank has to comply with in its recovery and resolution planning. The guidelines further elaborate on the requirements in the Notice and should be read in conjunction with Notice 654. The Notice shall take effect on January 30, 2019.
For the purpose of this notice, a “bank” means a bank that is incorporated in Singapore or, in the case of a bank incorporated outside Singapore, the branches and offices of the bank located within Singapore. In determining whether the bank’s recovery plan has adequately covered and addressed the Singapore operations, MAS will consider if the recovery plan includes the following factors:
- Details of the local governance and oversight
- Monitoring and escalation framework for the Singapore operations, including quantitative and qualitative triggers
- Recovery options available to the Singapore operations
- A communication plan specific to the stakeholders in Singapore
- An analysis of the impact of the group-wide recovery plan on the Singapore operations
Recovery and resolution planning is an important process to reduce risks posed by a bank to the stability of the financial system, ensure the continuity of critical functions to the economy, and allow a distressed bank to restore its financial strength, be restructured, or to exit the market in an orderly manner. The recovery and resolution planning process is an iterative one. MAS will engage and collaborate closely with banks to clarify their obligations and the MAS expectations with regard to the recovery and resolution plan as part of its supervisory interaction with banks.
Effective Date: January 30, 2019
Keywords: Asia Pacific, Singapore, Banking, MAS Notice 654, Recovery and Resolution, Resolution Plan, MAS
Next ArticleEBA Updates List of Correlated Currencies Under CRR
BIS published a paper that provides an overview on the use of big data and machine learning in the central bank community.
APRA finalized the reporting standard ARS 115.0 on capital adequacy with respect to the standardized measurement approach to operational risk for authorized deposit-taking institutions in Australia.
ECB published a guide that outlines the principles and methods for calculating the penalties for regulatory breaches of prudential requirements by banks.
MAS and The Association of Banks in Singapore (ABS) jointly issued a paper that sets out good practices for the management of operational and other risks stemming from new work arrangements adopted by financial institutions amid the COVID-19 pandemic.
ACPR announced that a new data collection application, called DLPP (Datalake for Prudential), for collecting banking and insurance prudential data will go into production on April 12, 2021.
BCB announced that the Financial Stability Committee decided to maintain the countercyclical capital buffer (CCyB) for Brazil at 0%, at least until the end of 2021.
EIOPA has launched a European-wide comparative study on non-life underwriting risk in internal models, also kicking-off of the data collection phase.
SRB published an overview of the resolution tools available in the Banking Union and their impact on a bank’s ability to maintain continuity of access to financial market infrastructure services in resolution.
EBA is consulting on the implementing technical standards for Pillar 3 disclosures on environmental, social, and governance (ESG) risks, as set out in requirements under Article 449a of the Capital Requirements Regulation (CRR).
ESAs Issue Advice on KPIs on Sustainability for Nonfinancial Reporting