MAS Consults on Anti-Commingling Framework for Banks
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
Previous Article
FED Updates Reporting Form FR Y-14Q in August 2017Related Articles
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
ECB to Expand Climate Change Work in 2024-2025
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.
BIS Bulletin Examines Cognitive Limits of Large Language Models
The use cases of generative AI in the banking sector are evolving fast, with many institutions adopting the technology to enhance customer service and operational efficiency.
ECB is Conducting First Cyber Risk Stress Test for Banks
As part of the increasing regulatory focus on operational resilience, cyber risk stress testing is also becoming a crucial aspect of ensuring bank resilience in the face of cyber threats.
EBA Continues Momentum Toward Strengthening Prudential Rules for Banks
A few years down the road from the last global financial crisis, regulators are still issuing rules and monitoring banks to ensure that they comply with the regulations.
EU and UK Agencies Issue Updates on Final Basel III Rules
The European Commission (EC) recently issued an update informing that the European Council and the Parliament have endorsed the Banking Package implementing the final elements of Basel III standards