MAS Extends Facility to Support Lending to SMEs Amid COVID-19 Crisis
MAS announced that it will extend the MAS SGD Facility for Enterprise Singapore (ESG) Loans to complement the six-month extension of Temporary Bridging Loan Program (TBLP) of ESG, from April 01, 2021 to September 30, 2021. The SGD Facility will provide SGD funding at an interest rate of 0.1% per annum for a two-year tenor to eligible financial institutions to support loans made under the TBLP and the Enterprise Financing Scheme—SME Working Capital Loan (the ESG Loan Schemes) from April 01, 2021 to September 30, 2021. MAS also published Banking (Publication and Provision of Accounts) Regulations that sets out the requirement for all banks to publish their annual balance-sheet, profit and loss account, and certain information in local daily newspapers or on banks' internet website and to make this information available to any person on request.
Since its introduction in April 2020, the MAS SGD Facility has disbursed SGD 5.7 billion to eligible financial institutions in support of their lending to companies under the ESG Loan Schemes. Taken together, the government’s risk-sharing through the ESG Loan Schemes and MAS’ lower-cost funding through the facility have helped to lower borrowing costs for local enterprises to a range of 1.5% to 3.0% per annum under the TBLP, from 6% or more for other unsecured working capital loans.
Keywords: Asia Pacific, Singapore, Banking, COVID-19, SME, Credit Risk, Lending Facility, MAS
Featured Experts
Victor Calanog, Ph.D.
Leading economist; commercial real estate; performance forecasting, econometric infrastructure; data modeling; credit risk modeling; portfolio assessment; custom commercial real estate analysis; thought leader.
Previous Article
FSB Examines Financial Stability Implications of Bigtech in FinanceRelated Articles
EBA Publishes Final Regulatory Standards on STS Securitizations
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying and, where relevant, calibrating the minimum performance-related triggers for simple.
ECB Further Reviews Costs and Benefits Associated with IReF
The European Central Bank (ECB) is undertaking the integrated reporting framework (IReF) project to integrate statistical requirements for banks into a standardized reporting framework that would be applicable across the euro area and adopted by authorities in other EU member states.
EBA Publishes Funding Plans Report, Receives EMAS Certification
The European Banking Authority (EBA) has been awarded the top European Standard for its environmental performance under the European Eco-Management and Audit Scheme (EMAS).
MAS Launches SaaS Solution to Simplify Listed Entity ESG Disclosures
The Monetary Authority of Singapore (MAS) set out the Financial Services Industry Transformation Map 2025 and, in collaboration with the SGX Group, launched ESGenome.
BCBS to Finalize Crypto Rules by End-2022; US to Propose Basel 3 Rules
The Basel Committee on Banking Supervision met, shortly after a gathering of the Group of Central Bank Governors and Heads of Supervision (GHOS), the oversight body of BCBS.
IOSCO Welcomes Work on Sustainability-Related Corporate Reporting
The International Organization of Securities Commissions (IOSCO) welcomed the work of the international audit and assurance standard setters—the International Auditing and Assurance Standards Board (IAASB)
BoE Allows One-Day Delay in Statistical Data Submissions by Banks
The Bank of England (BoE) published a Statistical Notice (2022/18), which informs that due to the Bank Holiday granted for Her Majesty Queen Elizabeth II’s State Funeral on Monday September 19, 2022.
ACPR Amends Reporting Module Timelines Under EBA Framework 3.2
The French Prudential Control and Resolution Authority (ACPR) announced that the European Banking Authority (EBA) has updated its filing rules and the implementation dates for certain modules of the EBA reporting framework 3.2.
ECB Paper Discusses Disclosure of Climate Risks by Credit Agencies
The European Central Bank (ECB) published a paper that examines how credit rating agencies accepted by the Eurosystem, as part of the Eurosystem Credit Assessment Framework (ECAF)
APRA to Modernize Prudential Architecture, Reduces Liquidity Facility
The Australian Prudential Regulation Authority (APRA) announced reduction in the aggregate Committed Liquidity Facility (CLF) for authorized deposit-taking entities to ~USD 33 billion on September 01, 2022.
