Admission Criteria
MAS' admission criteria will apply across the board to traditional banks and banks engaging in new business models such as Internet banking. In assessing an application for banking licence or to operate as a merchant bank, MAS takes into consideration, inter alia, the following factors:
- the track record, international standing, reputation and financial soundness of the applicant and its parent institution or major shareholders. This includes, amongst others, an assessment of the ability of the applicant and its parent institution in meeting international capital requirements in accordance with the Basel Capital Adequacy Framework. Ranking of the applicant and its parent institution in the world and home country in terms of total assets and capital strength will also be taken into consideration;
- the strength of the home country supervision and the willingness and ability of the home supervisory authority to cooperate with MAS. This includes the supervision of the applicant and its parent institution by the home country supervisory authority on a consolidated basis in accordance with the principles in the Basel Concordat. The applicant must also have received consent from its home country supervisory authority for the establishment of a banking operation in Singapore;
- whether the applicant has a well-developed strategy in banking or financial services, supported by business plans which include a detailed assessment of the continued economic viability of the business; and
- whether the applicant has risk management systems and processes commensurate with the size and complexity of its business.
Information on (c) and (d) will not be required for the establishment of a representative office which is not allowed to conduct banking business.
For more information on MAS' admission policy and licensing/approval requirements for banks and merchant banks, please refer to the MAS Policy Statement on Internet Banking, Banking Act (Cap 19), Notices to Banks, Notices to Merchant Banks, and Directives to Merchant Banks
For further clarification or enquiry on the licensing requirements, please contact bd@mas.gov.sg.
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Application Procedures
Prospective applicants are encouraged to contact Banking Supervision Department or Complex Institutions Supervision Department of MAS at an early stage to discuss their plans prior to submitting a formal application. Preliminary consultation with a prospective applicant enables MAS to discuss the licensing requirements with the applicant and to identify issues that may have a significant bearing on the proposed application.
All applications will be promptly processed by MAS. The processing time depends on the circumstances of each application and the completeness of information submitted by the applicant to MAS.
Application to set up Wholesale Bank/Offshore Bank/Merchant Bank (PDF, 114KB)
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