MAS Amends Regulatory Notices Applicable to Banks in Singapore
MAS revised multiple notices that are applicable to banks and merchant banks in Singapore and have been issued pursuant to the Banking Act (Cap 19). For foreign full and wholesales banks, MAS revised a notice on the minimum asset requirements. For both foreign and locally incorporated full and wholesale banks, MAS revised notices on the collection of statistical returns for unsecured credit facilities and on certain definitions, including that of the term "capital funds." For locally incorporated merchant banks and branches of foreign merchant banks, MAS published revised notices on the minimum liquid assets and liquidity coverage ratio, the credit facilities to a single borrower or group of borrowers, and the credit facilities to merchant bank directors, staff, and related concerns,. The notices take effect from July 01, 2021.
The revised MAS notices set out the following information:
- Notice 640 on minimum asset maintenance requirements. It covers requirements for the minimum amount of eligible assets that foreign banks must maintain in Singapore. This notice applies to all foreign banks. It sets out requirements on maintaining eligible assets in Singapore, computation of eligible assets and asset maintenance ratio, and submission of reports.
- Notice 760 on collection of statistical returns for unsecured credit facilities. It sets out requirements for banks to submit quarterly statistical returns to MAS for their unsecured non-card credit facility portfolio. The notice includes statistics collection templates (Appendix I and II), notes for completion, and timeline for submission.
- Notice 601 on definitions for certain terms. It sets out the definitions for the terms "capital funds," "net head office funds," and "head office capital funds," which banks must adhere to.
- Notice 1015 on minimum liquid assets and liquidity coverage ratio. It sets out the minimum liquid assets requirements and the liquidity coverage ratio requirements that a merchant bank has to comply with.
- Notice 1012 on credit facilities to a single borrower or group of borrowers. It sets out the limits for a merchant bank’s credit facilities to a single borrower or group of borrowers, and the conditions that must be met for the limit to be increased. Appendix I of the notice provides general guidelines or credit facilities to a single borrower or group of borrowers.
- Notice 1004 on credit facilities to merchant bank directors, staff, and related concerns. It sets out the requirements a merchant bank has to comply with when granting credit facilities to directors, staff, and related concerns. Appendix I of the notice includes statement of advances, loans or credit facilities to merchant bank directors, staff and related concerns. Appendix II of the notice provides explanatory notes for completion of the statement of advances, loans or credit facilities.
Effective Date: July 01, 2021
Keywords: Asia Pacific, Singapore, Banking, Merchant Banks, Regulatory Capital, Statistical Reporting, LCR, Credit Risk, Reporting, Liquidity Risk, MAS
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