Question:
To ask the Deputy Prime Minister, in view of recent changes to the Banking Act and of consolidation within the banking sector, whether there are any restrictions on the use of banks' names and corporate signages on buildings for advertisement purposes.
Answer:
1 Up to now, MAS has not allowed banks to exercise naming rights to buildings, or display their corporate signages on buildings, unless they own at least 50% of the building. This is to minimise the risk of depositors misunderstanding that these buildings are assets of the bank, and will be available to meet claims should the bank encounter problems.
2 MAS has reviewed this policy and decided that it is no longer necessary. The public should not associate the ownership of a building with a bank's financial strength. A bank's strength lies in the size and quality of its overall operations. Buildings are likely to constitute only a small percentage of a bank's total assets, especially in the case of foreign banks. Bank supervisors in most other countries also do not impose any such restriction.
3 Banks are henceforth free to negotiate with owners of buildings for naming rights, and to seek approval from URA for displaying signages on buildings, just like any other business. They no longer need to consult MAS in either case.