MAS Makes Multiple Announcements for Financial Sector
The Monetary Authority of Singapore (MAS) issued an update on the resolution framework for banks and announced that Credit Suisse Group AG will continue operating in Singapore with no interruptions or restrictions, following the announced takeover by UBS Group AG. MAS also imposed on DBS Bank Ltd an additional regulatory capital requirement, following the widespread unavailability of DBS Bank’s digital banking services on March 29, 2023 and a subsequent disruption to its digital banking and ATM services on May 05, 2023. In another development, MAS recently hosted the inaugural Financial Sector Cloud Resilience Forum for Asia Pacific financial regulators and Cloud Service Providers to exchange views on appropriate public cloud risk management practices for the financial sector. The Forum highlighted a trend of increasing adoption of public cloud services by financial institutions, the increasing need to ensure high operational resilience, and the criticality of sharing information between cloud service providers and regulators.
With respect to the update on resolution framework, MAS states that in exercising its powers to resolve a financial institution, it intends to abide by the hierarchy of claims in liquidation. This means that equity holders will absorb losses before holders of Additional Tier 1 (AT1) and Tier 2 capital instruments. Creditors who receive less in a resolution compared to what they would have received had the financial institution been liquidated would be able to claim the difference from a resolution fund that would be funded by the financial industry. The creditor compensation framework will also apply in the exceptional situation where MAS departs from the creditor hierarchy in order to contain the potential systemic impact of the financial institution’s failure or to maximize the value of the financial institution for the benefit of all creditors as a whole. MAS’ resolution framework is in line with the Financial Stability Board’s Key Attributes of Effective Resolution Regimes for Financial Institutions.
AT1 bonds in Singapore are offered in the wholesale market, which is only for institutional investors accredited investors or transactions in denominations of at least SGD 200,000. No prospectus for the offering of AT1 bonds to retail investors has been registered with MAS. 6. As with other investment products, financial institutions that offer or distribute AT1 bonds are expected to make accurate and clear disclosures of key product features and risks to investors. Investors should understand the risks and rewards, and exercise due care in their selection of investment products.
Related Links
Keywords: Asia Pacific, Singapore, Banking, Basel, Regulatory Capital, Resolution Framework, UBS-Credit Suisse, DBS Bank, Cloud Service Providers, Operational Resilience, MAS
Featured Experts

María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer

Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.

Patrycja Oleksza
Applies proficiency and knowledge to regulatory capital and reporting analysis and coordinates business and product strategies in the banking technology area
Previous Article
EC Updates Address Rules on Digital Platforms, Cyber Risk, and CMDIRelated Articles
ISSB Sustainability Standards Expected to Become Global Baseline
The finalization of the two sustainability disclosure standards—IFRS S1 and IFRS S2—is expected to be a significant step forward in the harmonization of sustainability disclosures worldwide.
IOSCO, BIS, and FSB to Intensify Focus on Decentralized Finance
Decentralized finance (DeFi) is expected to increase in prominence, finding traction in use cases such as lending, trading, and investing, without the intermediation of traditional financial institutions.
BCBS Assesses NSFR and Large Exposures Rules in US
The Basel Committee on Banking Supervision (BCBS) published reports that assessed the overall implementation of the net stable funding ratio (NSFR) and the large exposures rules in the U.S.
Global Agencies Focus on ESG Data, Climate Litigation and Nature Risks
At the global level, supervisory efforts are increasingly focused on addressing climate risks via better quality data and innovative use of technologies such as generative artificial intelligence (AI) and blockchain.
ISSB Standards Shine Spotlight on Comparability of ESG Disclosures
The finalization of the IFRS sustainability disclosure standards in late June 2023 has brought to the forefront the themes of the harmonization of sustainability disclosures
EBA Issues Several Regulatory and Reporting Updates for Banks
The European Banking Authority (EBA) recently issued several regulatory publications impacting the banking sector.
BCBS Proposes to Revise Core Principles for Banking Supervision
The Basel Committee on Banking Supervision (BCBS) launched a consultation on revisions to the core principles for effective banking supervision, with the comment period ending on October 06, 2023.
US Proposes Final Basel Rules, Transition Period to Start in July 2025
The U.S. banking agencies (FDIC, FED, and OCC) recently proposed rules implementing the final Basel III reforms, also known as the Basel III Endgame.
FSB Report Outlines Next Steps for Climate Risk Roadmap
The Financial Stability Board (FSB) recently published the second annual progress report on the July 2021 roadmap to address climate-related financial risks.
EBA Plans on Ad-hoc ESG Data Collection and Climate Scenario Exercise
The recognition of climate change as a systemic risk to the global economy has further intensified regulatory and supervisory focus on monitoring of the environmental, social, and governance (ESG) risks.