MAS Invites Comments on Proposed Minimum Paid-up Capital Requirement for Wholesale Banks
Singapore, 7 November 2007…The Monetary Authority of Singapore (MAS) has released a consultation paper on the proposed minimum paid-up capital requirement for locally incorporated wholesale banks.
2 Locally incorporated banks have tended to be Singapore-based, engaging in a full range of banking activities with significant retail operations. The Banking Act requires a minimum paid-up capital of S$1.5 billion for such banks. MAS considers this appropriate given their access to the retail market.
3 MAS has received feedback that there is some commercial interest to incorporate wholesale bank subsidiaries in Singapore. Whilst the S$1.5 billion minimum paid-up capital requirement continues to be appropriate for locally incorporated full banks, MAS is prepared to have a lower minimum paid up capital requirement of S$15 million for locally incorporated wholesale banks which are restricted from accepting deposits from retail customers. Locally incorporated wholesale banks with branches or subsidiaries outside Singapore will be required to have a minimum paid-up capital of S$100 million.
4 All locally incorporated wholesale banks will be subject to risk based capital requirements according to MAS capital rules and to prudential requirements that are commensurate with their risk profiles. They are also expected to comply with all regulatory requirements for locally incorporated banks under the Banking Act.
5 Interested parties should forward their comments on the proposals in the consultation paper to MAS by 7 December 2007. The consultation paper is available on the MAS website.
[Please click here to view the consultation paper ]