Singapore, 28 October 2026... MAS expects banks to identify, assess, manage and monitor material environmental risks arising from their activities and exposures, including risks associated with pollution and deforestation. In doing so, banks are also expected to take into consideration relevant information released by the National Environment Agency (NEA) under the Transboundary Haze Pollution Act (THPA).

2. Where customers may be linked to activities contributing to haze, banks should engage them and obtain sufficient information to understand their role and involvement, including whether adequate measures are in place to prevent, detect and stop fires.

3. Where heightened environmental risks are identified, banks should take appropriate measures to mitigate the risks. These may include imposing conditions, reviewing financing terms, limiting further exposures or reassessing the customer relationship. Clear breaches of environmental laws would warrant stronger measures, including limiting exposures or exiting the relationship.

4. MAS supports the local banks’ clear stance against burning practices and notes that they will take strong action where warranted.

5. MAS’ expectations are set out in the Guidelines on Environmental Risk Management issued in 2020 and further elaborated in the Guidelines on Transition Planning issued in March 2026. In light of the current situation, MAS has reinforced these supervisory expectations with banks.

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