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

    BoE Provides Reporting Update on Form AS and Form FV

    BoE updated the known issues document for the statistical reporting Forms AS and FV.

    August 10, 2020 WebPage Regulatory News
    News

    EBA Provides Clarity on Implementation of Guidance on COVID Reporting

    EBA updated the report on the implementation of selected COVID-19 policies.

    August 07, 2020 WebPage Regulatory News
    News

    OSFI Provides Update on Implementation of IFRS 17 in Canada

    OSFI published a letter that provides an update on the milestones for the implementation of the IFRS 17 standard on insurance contracts.

    August 07, 2020 WebPage Regulatory News
    News

    FSI Note Discusses Challenges Associated with COVID Relief Measures

    The Financial Stability Institute (FSI) of BIS published a brief note that examines the supervisory challenges associated with certain temporary regulatory relief measures introduced by BCBS and prudential authorities in response to the COVID-19 pandemic.

    August 06, 2020 WebPage Regulatory News
    News

    BCBS Consults on Principles for Operational Risk and Resilience

    BCBS is consulting on the principles for operational resilience and the revisions to the principles for sound management of operational risk for banks.

    August 06, 2020 WebPage Regulatory News
    News

    BoE Updates Template and Definitions for Form ER

    BoE updated the reporting template for Form ER as well as the Form ER definitions, which contain guidance on the methodology to be used in calculating annualized interest rates.

    August 05, 2020 WebPage Regulatory News
    News

    MAS Announces Key Initiatives to Support Adoption of SORA

    MAS announced several initiatives to support adoption of the Singapore Overnight Rate Average (SORA), which is administered by MAS.

    August 05, 2020 WebPage Regulatory News
    News

    HKMA Announces Repayment Deferment Under Payment Holiday Scheme

    HKMA, together with the Banking Sector Small and Medium-Size Enterprise (SME) Lending Coordination Mechanism, announced a ninety-day repayment deferment for trade facilities under the Pre-approved Principal Payment Holiday Scheme.

    August 05, 2020 WebPage Regulatory News
    News

    ESRB Paper Presents Alternative Approach to EBA Stress Test Proposal

    The Advisory Scientific Committee of ESRB published a response, in the form of an Insights Paper, to the EBA proposals for reforms to the stress testing framework in EU.

    August 05, 2020 WebPage Regulatory News
    News

    FASB Simplifies Accounting for Certain Financial Instruments

    FASB issued a new Accounting Standards Update (2020-06) to improve financial reporting associated with accounting for convertible instruments and contracts in an entity’s own equity.

    August 05, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 5642