MAS' Approval Required For Promotion Booths and Road Show Locations That Accept Customer Applications For Credit Facilities
Singapore, 8 December 2003... The Monetary Authority of Singapore (MAS) today reminded banks that under the Banking Act (section 12), MAS' approval is required before a bank sets up additional locations to receive applications for consumer credit products such as credit cards, charge cards and unsecured credit facilities.
MAS also informed banks that it would not ordinarily approve temporary promotion booths or road show locations that receive such applications.
Many issuers of credit and charge cards have set up temporary promotion booths and roadshows in order to promote their products and solicit applications from the public. MAS wants to minimise the likelihood of customers being rushed into hasty decisions to sign up for consumer credit products. MAS' longstanding policy to discourage consumers from borrowing excessively remains unchanged.
The restrictions do not apply to temporary booths or road show locations that merely distribute applications for financial products and services.
To ensure a level playing field between banks and non-bank issuers, MAS today imposed similar rules on non-bank issuers of credit and charge cards under the MAS Act.