MAS amended Notice 637 on the risk-based capital adequacy requirements for reporting banks incorporated in Singapore. The notice is issued pursuant to section 10(2), section 10A(1), section 10B(1), and section 65(2) of the Banking Act and applies to all locally incorporated full banks and wholesale banks. The amendments to the notice relate to Part VI on definition of capital, Part XI on public disclosure requirements, and Part XII on schedules for capital adequacy reporting. The amendments shall take effect from March 31, 2020.
The changes have been made to MAS Notice 637 to allow full recognition of balances maintained in regulatory loss allowance reserve accounts, pursuant to paragraph 6.3 of MAS Notice 612, as tier 2 capital. Notice 637 notice sets out:
- Capital adequacy ratio and leverage ratio requirements for a locally incorporated banks and the methodology and process for calculating these ratios
- Requirements for the internal capital adequacy assessment process of a locally incorporated bank
- Public disclosure requirements for a locally incorporated bank in relation to its capital adequacy and risk exposures
- Data submission and disclosure requirements on the indicators for assessing the systemic importance of global banks
Effective Date: March 31, 2020
Keywords: Asia Pacific, Singapore, Banking, MAS Notice 637, Capital Adequacy, Credit Risk, Basel III, Reporting, MAS
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