Featured Product

    MAS Amends Notice 635 and Issues Second Proposal on Green Taxonomy

    May 12, 2022

    The Monetary Authority of Singapore (MAS) published amendments to Notice 635, which sets out requirements that a bank in Singapore has to comply with when granting an unsecured non-card credit facility to individuals. The effective date for the amendments is May 14, 2022. In yet another development, the Green Finance Industry Taskforce (GFIT) of MAS is consulting, until June 23, 2022, on the second version of green and transition taxonomy.

    The consultation builds on Green Finance Industry Taskforce’s earlier proposed taxonomy in January 2021 and seeks feedback on the detailed thresholds and criteria for economic activities in the energy, transport, and real estate sectors. Out of the eight focus sectors, the three sectors covered in this consultation collectively account for nearly 90% of the Association of Southeast Asian Nations (ASEAN) greenhouse gas emissions. The proposed thresholds and criteria can be used to classify an economic activity as green, amber, or red, using a traffic light system, to differentiate its contribution to climate change mitigation. A green classification represents activities that either contribute substantially to climate change mitigation by operating at net zero or are on a pathway to net zero by 2050. Additionally, an amber classification represents transition and includes activities that are either transitioning toward green within a certain timeframe, or facilitating significant emissions reductions in the short term while a red classification refers to harmful activities that are not compatible with a net zero trajectory.

    The proposed taxonomy from the Taskforce accompanies a user guide for financial institutions and companies to apply the taxonomy. The user guide sets out details on the reporting of a company’s revenue, capital expenditures, and operating expenditures that are aligned with the taxonomy criteria. The Green Finance Industry Taskforce aims to release the criteria and thresholds for the remaining five sectors for public consultation in late 2022 and then subsequently finalize the full taxonomy in 2023. The remaining five sectors are Agriculture and Forestry/Land Use, Industrial, Information and Communications Technology, Waste/Circular Economy, and Carbon Capture and Sequestration.


    Comment Due Date: June 23, 2022


    Keywords: Asia Pacific, Singapore, Banking, ESG, Climate Change Risk, Sustainable Finance, Green Taxonomy, GFIT, MAS Notice 635, Unsecured Credit Facilities, Taxonomy, Disclosures, Credit Risk, Credit Limit, Lending, MAS

    Featured Experts
    Related Articles

    CFPB Finalizes Rule on Small Business Lending Data Collection

    The Consumer Financial Protection Bureau (CFPB) published a final rule that sets out data collection requirements on small business lending, under section 1071 of the Dodd-Frank Act.

    March 30, 2023 WebPage Regulatory News

    BCBS to Consult on Pillar 3 Climate Risk Disclosures by End of 2023

    The Bank for International Settlements (BIS) published a summary of the recent Basel Committee (BCBS) meetings.

    March 23, 2023 WebPage Regulatory News

    FINMA Approves Merger of Credit Suisse and UBS

    The Swiss Financial Market Supervisory Authority (FINMA) has approved the takeover of Credit Suisse by UBS.

    March 21, 2023 WebPage Regulatory News

    BOE Sets Out Its Thinking on Regulatory Capital and Climate Risks

    The Bank of England (BOE) published a working paper that aims to understand the climate-related disclosures of UK financial institutions.

    March 13, 2023 WebPage Regulatory News

    US Congress Report Examines Data Privacy and Cybersecurity Regulations

    The U.S. Congressional Research Service published a report on banking, data privacy, and cybersecurity regulation.

    March 13, 2023 WebPage Regulatory News

    OSFI Finalizes on Climate Risk Guideline, Issues Other Updates

    The Office of the Superintendent of Financial Institutions (OSFI) is seeking comments, until May 31, 2023, on the draft guideline on culture and behavior risk, with final guideline expected by the end of 2023.

    March 12, 2023 WebPage Regulatory News

    EU to Conduct One-Off Scenario Analysis to Assess Transition Risk

    The European authorities recently made multiple announcements that impact the banking sector.

    March 10, 2023 WebPage Regulatory News

    APRA Assesses Macro-Prudential Policy Settings, Issues Other Updates

    The Australian Prudential Regulation Authority (APRA) published an information paper that assesses its macro-prudential policy settings aimed at promoting stability at a systemic level.

    March 07, 2023 WebPage Regulatory News

    BIS Paper Examines Impact of Greenhouse Gas Emissions on Lending

    BIS issued a paper that investigates the effect of the greenhouse gas, or GHG, emissions of firms on bank loans using bank–firm matched data of Japanese listed firms from 2006 to 2018.

    March 03, 2023 WebPage Regulatory News

    HMT Mulls Alignment of Ring-Fencing and Resolution Regimes for Banks

    The HM Treasury (HMT) is seeking evidence, until May 07, 2023, on practicalities of aligning the ring-fencing and the banking resolution regimes for banks.

    March 02, 2023 WebPage Regulatory News
    RESULTS 1 - 10 OF 8810