Basel II Implementation in Singapore
On 26 June 2004, the Basel Committee on Banking Supervision (BCBS) published its Revised Framework on "International Convergence of Capital Measurement and Capital Standards" (commonly referred to as "Basel II"). Basel II has been designed as a more risk-sensitive framework for establishing minimum levels of capital for internationally active banks than the 1988 Basel Capital Accord (commonly referred to as "Basel I"). Basel II comprises three "pillars": Pillar 1 prescribes the minimum capital requirements to support a bank's credit, market and operational risks. Pillar 2 describes the accompanying supervisory review of a bank's internal capital adequacy assessment. It encourages banks to continually develop and use better risk management techniques to monitor and manage their risks, and to have processes for assessing their overall capital adequacy in relation to their risk profile. Pillar 3 prescribes minimum disclosure to facilitate market discipline.
MAS supports the broad objectives of Basel II and believes that it will incentivise improvements in risk management, as well as complement MAS' supervisory objectives. MAS has implemented Basel II in Singapore for all Singapore-incorporated banks on 1 January 2008.
MAS publications on Basel II
MAS Notice 637: Notice on Risk Based Capital Adequacy Requirements for Banks Incorporated in Singapore (PDF, 4.7MB) (Last revised on 16 Dec 2011; will be effective from 31 Dec 2011)
MAS Notice 637: Notice on Risk Based Capital Adequacy Requirements for Banks Incorporated in Singapore (PDF, 7.23MB) (Last revised on 5 July 2010)
Consultation Papers
Guidelines
MAS speeches on Basel II
Selected BCBS documents
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