MAS published amendments to Notices 632B, 645A, 825B, 831A, 1106B, and 1115A related to the residential property loans in Singapore. Additionally, MAS published amendments to Notices 642 and 1113 related to motor vehicle loans, along with amendments to Notices 635, 827, and 1109 related to unsecured credit facilities to individuals. The amendments shall take effect on May 06, 2020. Notices 825B, 827, and 831A apply to all finance companies in Singapore; Notices 632B, 635, 642, and 645A apply to all banks in Singapore; and Notices 1106B, 1109, 1113, and 1115A apply to all merchant banks in Singapore.
Notice 632B sets out the rules for banks when granting residential property loans, including limits on loan amount, conditions for loans, and tenure of credit and refinancing facilities. Notice 825B sets out the requirements for finance companies to comply with when granting new and refinanced residential property loans, including loan-to-value (LTV) limits and loan tenure rules. Notice 1106B sets out rules for merchant banks when granting residential property loans to individuals and non-individuals. Notices 645A, 831A, and 1115A set out requirements on computing the total debt servicing ratio (TDSR) for property loans for banks, finance companies, and merchant banks, respectively. Notices 642 and 1113 set out rules for banks and merchant banks, respectively, when granting motor vehicle loans to individuals, including loan tenure and LTV limits. Notices 635, 827, and 1109 set out requirements on granting an unsecured non-card credit facility to an individual for banks, finance companies, and merchant banks, respectively.
Effective Date: May 06, 2020
Keywords: Asia Pacific, Singapore, Banking, Securities, Residential Property Loans, Merchant Banks, Debt Service Ratio, LTV, MAS
Previous ArticleRBNZ Finds ANZ Incompliant with Internal Model Capital Calculations
HKMA is consulting on revisions to the Supervisory Policy Manual module CR-G-14 on margin and other risk mitigation standards for non-centrally cleared over-the-counter (OTC) derivatives transactions.
PRA provided further information on the application of regulatory capital and IFRS 9 requirements to payment holidays granted or extended to address the challenges arising from COVID-19 outbreak.
HKMA announced the publication of a report on fintech adoption and innovation in the banking industry in Hong Kong.
BIS published a working paper that examines the drivers of cyber risk, especially in context of the cloud services.
ECB launched consultation on a guide specifying how the Banking Supervision expects banks to consider climate-related and environmental risks in their governance and risk management frameworks and when formulating and implementing their business strategy.
ECB published an opinion (CON/2020/16) on amendments to the prudential framework in EU in response to the COVID-19 pandemic.
EBA published a report that examines the interlinkages between recovery and resolution planning under the Bank Recovery and Resolution Directive (BRRD).
SRB published the final Minimum Requirements for Own Funds and Eligible Liabilities (MREL) policy under the Banking Package.
US Agencies (FDIC, FED, and OCC) published a final rule that makes technical changes to the March 31, 2020 interim final rule that provides a five-year transition period for the impact of the current expected credit loss (CECL) methodology on regulatory capital.
ECB published results of the March 2020 survey on credit terms and conditions in euro-denominated securities financing and over-the-counter (OTC) derivatives markets.