Featured Product

    MAS Amends Regulatory Notices Applicable to Banks in Singapore

    June 11, 2021

    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

    Featured Experts
    Related Articles
    News

    HKMA Finalizes Policy Modules on Group-Wide Approach and Remuneration

    The Hong Kong Monetary Authority (HKMA) revised the Supervisory Policy Manual module CG-5 that sets out guidelines on a sound remuneration system for authorized institutions.

    July 29, 2021 WebPage Regulatory News
    News

    EBA Guide to Monitor Threshold for Intermediate Parent Undertakings

    The European Banking Authority (EBA) published the final guidelines on the monitoring of the threshold and other procedural aspects on the establishment of intermediate parent undertakings in European Union (EU), as laid down in the Capital Requirements Directive (CRD).

    July 28, 2021 WebPage Regulatory News
    News

    PRA Finalizes Approach to Supervision of International Banks

    In a recent Market Notice, the Bank of England (BoE) confirmed that green gilts will have equivalent eligibility to existing gilts in its market operations.

    July 26, 2021 WebPage Regulatory News
    News

    FCA Issues PS21/9 on Implementation of Investment Firms Regime

    The Financial Conduct Authority (FCA) published the policy statement PS21/9 on implementation of the Investment Firms Prudential Regime.

    July 26, 2021 WebPage Regulatory News
    News

    EBA Proposes Regulatory Standards to Identify Shadow Banking Entities

    The European Banking Authority (EBA) proposed regulatory technical standards that set out criteria for identifying shadow banking entities for the purpose of reporting large exposures.

    July 26, 2021 WebPage Regulatory News
    News

    IOSCO Proposes Recommendations on ESG Ratings and Data Providers

    The Board of the International Organization of Securities Commissions (IOSCO) proposed a set of recommendations on the environmental, social, and governance (ESG) ratings and data providers.

    July 26, 2021 WebPage Regulatory News
    News

    ESMA Group Issues Recommendations on RFR Switch in Interdealer Market

    The European Securities and Markets Authority (ESMA) published recommendations from the Working Group on Euro Risk-Free Rates (RFR) on the switch to risk-free rates in the interdealer market.

    July 26, 2021 WebPage Regulatory News
    News

    ECB Study Assesses Impact of Basel III Finalization Package

    The European Central Bank (ECB) published a paper as well as an article in the July Macroprudential Bulletin, both of which offer insights on the assessment of the impact of Basel III finalization package on the euro area.

    July 26, 2021 WebPage Regulatory News
    News

    ISDA Finds FRTB Results in Higher Capital Charges for Carbon Trading

    The International Swaps and Derivatives Association (ISDA) published a paper that explores the impact of the Fundamental Review of the Trading Book (FRTB) on the trading of carbon certificates.

    July 26, 2021 WebPage Regulatory News
    News

    PRA Updates Remuneration Policy Statement Templates and Tables

    The Prudential Regulation Authority (PRA) published the remuneration policy self-assessment templates and tables on strengthening accountability.

    July 26, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7307