January 30, 2019

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

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