MAS published amendments to Notice 637 on the risk-based capital adequacy requirements for reporting banks incorporated in Singapore. The published document reflects amendments to MAS Notice 637 to define regulatory loss allowance, which is recognized as tier 2 Capital. The changes also revise the capital treatment for public-sector entities and implement other technical revisions to the credit and market risk frameworks. The amendments to Notice 637 shall take effect on October 01, 2020.
The amendments specifically relate to Part II on definitions, Part III on scope of application, Part IV on capital adequacy ratios and leverage ratio, Part VI on definition of capital, Part VII on credit risk, Part VIII on market risk, Part IX on operational risk, Part X on supervisory review process, Part XI on public disclosure requirements, and Part XII on reporting schedules (schedule 2-7). Overall, the notice sets out:
- Capital adequacy ratio and leverage ratio requirements for a locally incorporated banks and the methodology and process for calculating these ratios
- Requirements for the internal capital adequacy assessment process of a locally incorporated bank
- Public disclosure requirements for a locally incorporated bank in relation to its capital adequacy and risk exposures
- Data submission and disclosure requirements on the indicators for assessing the systemic importance of global banks
Effective Date: October 01, 2020
Keywords: Asia Pacific, Singapore, Banking, MAS Notice 637, Credit Risk, Reporting, Basel, Regulatory Capital, Disclosures, Market Risk, MAS
Previous ArticleISDA Expects IBOR Fallbacks to be Effective by End of January 2021
The Board of Governors of the Federal Reserve System (FED) adopted the final rule on Adjustable Interest Rate (LIBOR) Act.
The European Central Bank (ECB) published an updated list of supervised entities, a report on the supervision of less significant institutions (LSIs), a statement on macro-prudential policy.
The Hong Kong Monetary Authority (HKMA) published a circular on the prudential treatment of crypto-asset exposures, an update on the status of transition to new interest rate benchmarks.
The European Commission (EC) adopted the standards addressing supervisory reporting of risk concentrations and intra-group transactions, benchmarking of internal approaches, and authorization of credit institutions.
The China Banking and Insurance Regulatory Commission (CBIRC) issued rules to manage the risk of off-balance sheet business of commercial banks and rules on corporate governance of financial institutions.
The Hong Kong Monetary Authority (HKMA) made announcements to address sustainability issues in the financial sector.
The European Banking Authority (EBA) published regulatory standards on identification of a group of connected clients (GCC) as well as updated the lists of identified financial conglomerates.
The General Board of the European Systemic Risk Board (ESRB), at its December meeting, issued an updated risk assessment via the quarterly risk dashboard and held discussions on key policy priorities to address the systemic risks in the European Union.
The Financial Conduct Authority (FCA) is seeking comments, until December 21, 2022, on the draft guidance for firms to support existing mortgage borrowers.
The Financial Stability Board (FSB) published a report that assesses progress on the transition from the Interbank Offered Rates, or IBORs, to overnight risk-free rates as well as a report that assesses global trends in the non-bank financial intermediation (NBFI) sector.