Monetary Authority of Singapore Annual Report 2012/2013

A ROBUST FINANCIAL CENTRE

Changes to the Qualifying Full Bank Programme

As part of MAS’ efforts to encourage foreign banks to deepen their roots in Singapore while strengthening Singapore’s financial stability, MAS announced changes to the Qualifying Full Bank (QFB) programme.

In June 2012, MAS announced its intention to grant a very small number of significantly rooted QFBs, an additional 25 places of business, of which up to 10 may be branches, as part of an overall package negotiated under free trade agreements (FTAs) with these QFBs’ home countries. In determining whether a QFB is significantly rooted, MAS will consider a range of quantitative and qualitative attributes that demonstrates the QFB’s ability and willingness to support Singapore’s financial stability and development. Some of these attributes include whether the bank is locally incorporated with majority Singaporean/PRBoard representation, and what types of businesses are conducted by the locally incorporated entity; and if Singapore is one of the bank’s major markets, constituting a substantial part of group profits and assets.

In addition, MAS will require existing QFBs that are important to the domestic market, as well as new QFBs offered under future FTAs, to locally incorporate, at minimum, their retail operations so as to enhance depositor protection.