MAS published consultation paper on review of anti-commingling framework for banks. The anti-commingling policy was introduced by MAS in 2001, to separate the financial and non-financial businesses of banks in Singapore. MAS recognizes that there is scope to simplify the regulatory requirements and expand the scope for banks seeking to conduct or invest in permissible non-financial businesses that are related or complementary to their core financial businesses. Comments are to be submitted by November 15, 2017.
MAS is proposing to refine the following two aspects of the anti-commingling framework for banks:
- The conditions and requirements under regulation 23G will be streamlined to make it easier for banks to conduct or invest in permissible non-financial businesses that are related or complementary to their core financial businesses.
- Banks will be allowed to engage in the operation of digital platforms that match buyers and sellers of consumer goods or services as well as in the online sale of such goods or services.
The anti-commingling policy was intended to help banks remain focused on their core banking business and competencies and to avoid potential contagion from the conduct of non-financial businesses. The policy was updated in 2011, through the introduction of regulation 23G of the Banking Regulations, to give banks flexibility to carry on businesses that are related or complementary to their core financial businesses. MAS recognized that there is scope to simplify and adjust the anti-commingling framework, while safeguarding its core policy objectives. This will allow banks to broaden and better integrate their range of services.
Comment Due Date: November 15, 2017
Keywords: Asia Pacific, Singapore, Banking, Anti-Commingling Policy, Banking Regulation, MAS
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