MAS Amends Notice 637 on Capital Adequacy Requirements for Banks
MAS amended Notice 637 on risk-based capital adequacy requirements for banks incorporated in Singapore and the amendments shall take effect on January 01, 2018. MAS also published its response to the feedback received on proposed amendments to the capital framework for securitization exposures in MAS Notice 637.
The recent revisions to MAS Notice 637 reflect amendments to implement revisions to the capital framework for securitization exposures applicable to Singapore-incorporated banks. The amendments to the securitization framework will strengthen the capital standards for securitization exposures, while providing a preferential capital treatment for simple, transparent, and comparable traditional securitizations. The amendments include the International Development Association and the Asian Infrastructure Investment Bank in the list of qualifying multilateral development banks, along with other miscellaneous amendments. MAS amendments to Notice 637 are consistent with the BCBS standard on securitization framework, including the one on regulatory capital treatment for simple, transparent, and comparable securitizations.
MAS had, in January 2017, published a consultation paper on the capital framework for securitization exposures as well as for interest rate risk in the banking book (IRRBB). The consultation period ended on February 10, 2017. Although MAS has published responses to the feedback received on the amendments for securitization exposures, it will be publishing its responses to the feedback received on the amendments for IRRBB at a later date.
Effective Date: January 01, 2018
Keywords: Asia Pacific, Singapore, Banking, MAS Notice 637, Securitization, STC Securitization, Capital Adequacy, Basel III, 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.
Patrycja Oleksza
Applies proficiency and knowledge to regulatory capital and reporting analysis and coordinates business and product strategies in the banking technology area
Previous Article
ESAs Propose Amendments to Technical Standards on Mapping of ECAIsRelated Articles
BIS and Central Banks Experiment with GenAI to Assess Climate Risks
A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe
Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures
Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.
Singapore to Mandate Climate Disclosures from FY2025
Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies
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.
EBA Proposes Standards Related to Standardized Credit Risk Approach
The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU
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.