MAS issues revised MAS Notice 637 on “Risk Based Capital Adequacy Requirements for Banks Incorporated in Singapore” effective 30 June 2019
27 June 2019
On 10 June 2019, the Monetary Authority of Singapore (“MAS”) issued a revised MAS Notice 637 on “Risk Based Capital Adequacy Requirements for Banks Incorporated in Singapore” (“MAS Notice 637”). The amendments take effect from 30 June 2019.
Among other things, MAS Notice 637 establishes the minimum capital adequacy ratios for a bank incorporated in Singapore and the methodology for calculating these ratios. MAS Notice 637 also sets out MAS’s expectations in respect of the internal capital adequacy assessment process of a bank under the supervisory review process. It also specifies the minimum disclosure requirements for a bank in relation to its capital adequacy, with a view to enhancing market discipline.
With effect from 30 June 2019, amendments are made to MAS Notice 637 to:
- allow the recognition of on-balance sheet netting agreements for loans and deposits for credit risk mitigation purposes;
- introduce proportionality for disclosure requirements;
- revise certain disclosure templates; and
- implement other technical revisions.
Reference materials
The following materials are available from the MAS website www.mas.gov.sg: