On 31 December 2013, the Monetary Authority of Singapore (the “MAS”) issued a revised MAS Notice 637 on Risk Based Capital Adequacy Requirements for Banks Incorporated in Singapore (the “MAS Notice 637”) to incorporate the data submission and disclosure requirements for assessing global systemically important banks (“G-SIBs”) and requirements to ensure loss absorbency at the point on non-viability (the “PONV requirements”).
Data submission and disclosure requirements for assessing G-SIBs
A Singapore-incorporated bank is required to refer to publications issued by the Basel Committee on Banking Supervision (the “BCBS”) for interpretative guidance on the Basel capital framework and the framework for assessing G-SIBs. The MAS Notice 637 requires Singapore-incorporated banks to make publicly available the 12 indicators used in the BCBS’ assessment methodology for identifying G-SIBs and to submit to the MAS the full set of data required by the BCBS’ data collection exercise to assess systemic importance of banks at a global level.
Annex 6B of the MAS Notice 637 sets out the PONV requirements which dictate what the MAS may take into account, among other considerations, in assessing a reporting bank’s viability.
In October 2013, the MAS issued a consultation paper inviting comments on the above amendments to the MAS Notice 637. On 31 December 2013, the MAS issued its Response to the feedback received from the public consultation. For a summary of the consultation paper, please click here for an article entitled “MAS consultation paper on ‘Proposed Amendments to MAS Notice 637 on Disclosure and Submission Requirements for Assessing Global Systemically Important Banks and Point of Non-Viability Requirements’” that was featured in a previous issue of the Allen & Gledhill Financial Services Bulletin (October 2013).
The following materials are available from the MAS website www.mas.gov.sg: