Featured Product

    IMF Issues Report on the 2018 Article IV Consultation with Singapore

    July 27, 2018

    IMF published its staff report under the 2018 Article IV consultation with Singapore. Directors noted that the financial sector remains healthy, with adequate buffers and strong balance sheets for banks. Directors welcomed the efforts of the authorities to strengthen the regulatory framework in line with Basel III principles and to enhance the anti-money laundering/countering the financing of terrorism (AML/CFT) framework.

    The report reveals that staff welcomes the authorities’ efforts to strengthen the regulatory framework in line with Basel III principles. The authorities implemented a leverage ratio requirement of 3% and revised securitization framework from January 2018, along with the adoption of liquidity requirements. All domestic systemically important banks are required to meet the Net Stable Funding Ratio requirements on all currency level since January 2018, in addition to the Liquidity Coverage Ratio requirements. Moreover, in July 2017, enhancements to the resolution regime was introduced, including statutory bail-in, recovery and resolution planning, and creditor compensation framework. Overall, the asset quality of the banking system has improved and provisioning buffers remain adequate. Industry-wide stress tests show that the banking system is resilient to a significant deterioration in external and domestic conditions and sector-specific shocks. The authorities, however, consider that banks’ liquidity management warrants closer monitoring. They also noted that banks’ diversified funding sources and liquid assets, which are well above the regulatory minimum, are important mitigating factors. It is also recommended that the authorities should closely monitor the banking system’s rising foreign currency loan-to-deposit ratio for non-bank exposures. 

    Additionally, the report highlights that Singapore is a financial hub with global innovation aspirations. MAS appropriately supports development of a fintech ecosystem while adapting financial regulations to the changing landscape. Risks associated with fintech developments are closely monitored and increasingly integrated in the supervisory agenda. Risks related to ML/TF, cyber-security, and consumer protection are also carefully being monitored. MAS has been at the forefront of cross-border regulatory cooperation: it has established a regional industry sandbox in partnership with International Finance Corporation and ASEAN Bankers Association and has put in place information-sharing arrangements on fintech developments. Staff also welcomed the authorities’ support of the industry’s development of potential technological solutions to AML/CFT risks using regulatory technology (regtech) and supervisory technology (suptech), including the launch of the AML/CFT Industry Partnership (ACIP) Work Group on data analytics.

    Moreover, the Directors encouraged the authorities to continue to support the development of a fintech ecosystem while regulations would require adaptation to emerging risks. Directors also noted that the upcoming 2019 FSAP intends to examine the financial sector issues in detail and will follow up on the emerging risks, including fintech-related risks and their implications for the banking sector. 

     

    Related Link: Staff Report

    Keywords: Asia Pacific, Singapore, Banking, Article IV, Basel III, Fintech, Regtech, Suptech, IMF

     

    Featured Experts
    Related Articles
    News

    ESMA Releases Enforcement Priorities for 2019 Annual Financial Reports

    ESMA published a statement on the priorities that European enforcers will consider when examining the 2019 annual financial reports of listed companies.

    October 22, 2019 WebPage Regulatory News
    News

    EC Consults on Alternative Standardized Approach for Market Risk

    EC is consulting on a delegated regulation amending the Capital Requirements Regulation (CRR) with regard to the alternative standardized approach for market risk.

    October 21, 2019 WebPage Regulatory News
    News

    CPMI Report Examines Impact of Global Stablecoins

    This report by the G7 Working Group on Stablecoins finds that stablecoins, regardless of size, have implications ranging from anti-money laundering efforts across jurisdictions to operational resilience (including for cyber security), consumer or investor and data protection, and tax compliance.

    October 18, 2019 WebPage Regulatory News
    News

    BoE Announces Date for Publication of Stress Test Results for Banks

    BoE announced its plans to publish results of the full UK annual stress tests on December 10, 2019.

    October 18, 2019 WebPage Regulatory News
    News

    US Agencies Request Comments on Use and Impact of CAMELS Ratings

    US Agencies (FDIC and FED) are seeking information and comments from interested parties regarding the consistency of ratings assigned by the agencies under the Uniform Financial Institutions Rating System (UFIRS).

    October 18, 2019 WebPage Regulatory News
    News

    PRA Consults on Approach to Supervising Liquidity and Funding Risks

    In consultation paper (CP27/19), PRA published a proposal (CP27/19) to update the supervisory statement SS24/15 on the PRA approach to supervising liquidity and funding risk.

    October 17, 2019 WebPage Regulatory News
    News

    US Agencies Consult on Policy Statement on Allowance for Credit Losses

    US Agencies (FDIC, FED, NCUA, and OCC) are consulting on the policy statement on allowances for credit losses and on the guidance on credit risk review systems.

    October 17, 2019 WebPage Regulatory News
    News

    FSI Paper Examines Use of Suptech Initiatives by Financial Authorities

    The Financial Stability Institute (FSI) of BIS published a paper that examines the suptech developments by analyzing suptech initiatives of 39 financial authorities globally.

    October 17, 2019 WebPage Regulatory News
    News

    US Agencies Publish Notice to Extend Form FFIEC 102 for Three Years

    US Agencies (FDIC, FED, and OCC) published a joint notice regarding extension of the market risk regulatory report for institutions subject to the market risk capital rule (FFIEC 102).

    October 17, 2019 WebPage Regulatory News
    News

    ECB Publishes Recommendations on Euro Risk-Free Rates Transition

    ECB published a report, by private sector working group on euro risk-free rates, which contains recommendations, from a risk management perspective, on the transition to new risk-free rates.

    October 17, 2019 WebPage Regulatory News
    RESULTS 1 - 10 OF 4006