MAS Amends Notices on NSFR and Single Counterparty Credit Exposures
MAS published amendments to the Notice 652 on net stable funding ratio (NSFR), along with the related reporting template. MAS also amended Notices 632 and 656 in relation to exposures to single counterparty groups, Notice 643 on transactions with related parties, and Notice 607 on information that all banks in Singapore are required to include in their publication of annual financial statements. The amendments shall take effect on October 01, 2020.
MAS Notice 652 (Amendment No. 2) 2020 reflects amendments made to Notice 652 as a result of the commencement of section 10 of the Banking (Amendment) Act 2020 on October 01, 2020. Section 10 of the Banking (Amendment) Act 2020 inserts a new section 10C to the Banking Act (Cap. 19) on Stable Funding Requirement. Notice 652 sets out the minimum all-currency NSFR requirements for bank compliance and it applies to all domestic systemically important banks and internationally active banks. Notice 643, which applies to all banks, sets out the definition, scope, and general principles governing transactions with related parties, along with the responsibilities of banks to maintain oversight and control over their related party transactions.
MAS Notice 639 (Amendment) 2020 reflects amendments made to the Notice 639 to apply it to only banks incorporated in Singapore. MAS Notice 656 (Amendment) 2020 reflects amendments to Notice 656 as a result of the amendments to the Banking Act (Cap. 19) set out in the Banking (Amendment) Act 2020 as well as to delay the effective date of the Notice to July 01, 2021. Notice 639 applies to all banks in Singapore while Notice 656 applies to all locally incorporated banks. Notices 639 and 656 set out the limits on exposure of a bank to a single counterparty group, types of exposures to include or exclude from those limits, basis for computing and aggregating exposures, recognition of credit risk mitigation, and approach for aggregation of exposures.
Effective Date: October 01, 2020
Keywords: Asia Pacific, Singapore, Banking, MAS Notice 652, MAS Notice 656, MAS Notice 639, D-SIBs, NSFR, Counterparty Credit Risk, Credit Risk, Liquidity Risk, Reporting, Basel, 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.
Karen Moss
Senior practitioner in asset and liability management (ALM) and liquidity risk who assists banking clients in advancing their treasury and balance sheet management objectives
Previous Article
EC Publishes Action Plan for Capital Markets Union in EURelated Articles
US Agencies Issue Several Regulatory and Reporting Updates
The Board of Governors of the Federal Reserve System (FED) adopted the final rule on Adjustable Interest Rate (LIBOR) Act.
ECB Issues Multiple Reports and Regulatory Updates for Banks
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.
HKMA Keeps List of D-SIBs Unchanged, Makes Other Announcements
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.
EU Issues FAQs on Taxonomy Regulation, Rules Under CRD, FICOD and SFDR
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.
CBIRC Revises Measures on Corporate Governance Supervision
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.
HKMA Publications Address Sustainability Issues in Financial Sector
The Hong Kong Monetary Authority (HKMA) made announcements to address sustainability issues in the financial sector.
EBA Updates Address Basel and NPL Requirements for Banks
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.
ESMA Publishes 2022 ESEF XBRL Taxonomy and Conformance Suite
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.
FCA Sets up ESG Committee, Imposes Penalties, and Issues Other Updates
The Financial Conduct Authority (FCA) is seeking comments, until December 21, 2022, on the draft guidance for firms to support existing mortgage borrowers.
FSB Reports Assess NBFI Sector and Progress on LIBOR Transition
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.
