General Information & Client Service
  • Americas: +1.212.553.1653
  • Asia: +852.3551.3077
  • China: +86.10.6319.6580
  • EMEA: +44.20.7772.5454
  • Japan: +81.3.5408.4100
Media Relations
  • New York: +1.212.553.0376
  • London: +44.20.7772.5456
  • Hong Kong: +852.3758.1350
  • Tokyo: +813.5408.4110
  • Sydney: +61.2.9270.8141
  • Mexico City: +001.888.779.5833
  • Buenos Aires: +0800.666.3506
  • São Paulo: +0800.891.2518
October 19, 2017

MAS published a feedback statement to the consultation proposing amendments to MAS Notices 612, 1005, 637, and 1111 in relation to the changes in the recognition and measurement of allowance for credit losses—introduced in International Financial Reporting Standard 9 (IFRS 9) and Singapore Financial Reporting Standard (SFRS) 109.. The consultation was published on May 12, 2017 and comments were due by June 12, 2017. The list of respondents and the feedback that respondents agreed to publish are appended to Annexes A and B, respectively.

This document summarizes comments that are of wider interest, along with MAS’ responses and policy decisions. MAS will reply to all respondents individually and publish the finalized MAS Notices 612, 1005, 637, and 1111 before the end of 2017. The policy proposals are calibrated to meet MAS’ prudential objectives in areas where the expected credit loss (ECL) model under IFRS 9 and SFRS 109 may not fully address its prudential concerns. MAS received a wide range of feedback from various stakeholders, with some respondents seeking clarification on certain policy proposals. MAS has carefully considered all feedback received, taking into account its observations on the ECL accounting model and its prudential objectives, along with the requirement for banks in Singapore to apply SFRS 109.

The Singapore Accounting Standards Council has adopted the IFRS 9 standard and issued it as SFRS 109 Financial Instruments. SFRS 109 will replace SFRS 39 Financial Instruments: Recognition and Measurement and will be effective for annual periods beginning on or after January 01, 2018. Banks in Singapore are, therefore, required to apply SFRS 109, or IFRS 9 (for locally incorporated banks that are listed on the Singapore Exchange), in the preparation of their financial statements for reporting periods beginning on or after January 01, 2018, in accordance with sections 201 or 373 of the Companies Act (Cap. 50). SFRS 109 introduces a new approach for the estimation of allowance for credit losses based on the expected credit loss (ECL) model, which includes more forward-looking information and addresses the issue of delayed recognition of credit losses on loans and other financial instruments under the incurred loss model.


Effective Date: January 01, 2018

Keywords: Asia Pacific, Singapore, Banking, Accounting, IFRS 9, ECL, SFRS 109, Credit Loss Provisioning, MAS

Related Insights

US Agencies Propose Revisions to FFIEC Reports 031, 041, 051, and 101

US Agencies (FDIC, FED, and OCC) propose to extend for three years, with revision, FFIEC 031, FFIEC 041, FFIEC 051, and FFIEC 101.

February 21, 2019 WebPage Regulatory News

OFR Adopts Data Collection Rule on Centrally Cleared Repo Transactions

OFR adopted a final rule to establish a data collection covering centrally cleared funding transactions in the U.S. repurchase agreement (repo) market.

February 20, 2019 WebPage Regulatory News

FHFA Finalizes Rule on Federal Home Loan Bank Capital Requirements

FHFA published, in Federal Register, the final rule to adopt, as its own, portions of the regulations of the Federal Housing Finance Board pertaining to the capital requirements for the Federal Home Loan Banks.

February 20, 2019 WebPage Regulatory News

PRA Publishes PS4/19 on Loss-Absorbency Mechanism Under Solvency II

PRA published a policy statement (PS4/19) that provides feedback on responses to the consultation paper (CP27/18) on adjusting for the reduction of loss absorbency where own fund instruments are taxed on write down under Solvency II.

February 20, 2019 WebPage Regulatory News

SRB Publishes Framework for Performing Valuations in Resolution

The framework provides independent valuers and the general public with an indication of the expectations of SRB on the principles and methodologies for valuation reports, as set out in the legal framework.

February 19, 2019 WebPage Regulatory News

BIS Paper on Effect of Securities Lending on OTC Market Liquidity

BIS published a working paper that studies how securities lending affects over-the-counter market (OTC) liquidity.

February 19, 2019 WebPage Regulatory News

US Agencies Extend Consultation Period for the Proposed SA-CCR

US Agencies (FDIC, FED, and OCC) extended the comment period for a proposed rule to update their standards for how firms measure counterparty credit risk posed by derivative contracts.

February 18, 2019 WebPage Regulatory News

FED Extends Consultation Period for Stress Testing Rule

FED has published in the Federal Register a notice proposing amendments to the company run and supervisory stress test rules.

February 15, 2019 WebPage Regulatory News

EBA Single Rulebook Q&A: Third Update for February 2019

EBA published answers to two questions under the Single Rulebook question and answer (Q&A) updates for this week.

February 15, 2019 WebPage Regulatory News

SEC Proposes Rule on Risk Mitigation Techniques for Uncleared SBS

SEC proposed a rule that would require the application of specific risk-mitigation techniques to portfolios of security-based swaps (SBS) that are not submitted for clearing.

February 15, 2019 WebPage Regulatory News
RESULTS 1 - 10 OF 2623