Robust and Resilient Financial Centre

Robust Banking and Insurance Sectors

The Banking (Amendment) Bill was passed in Parliament on 6 January 2020 to streamline MAS’ licensing and regulatory functions and enhance banking supervision 

6 January 2020

The key amendments to the Banking Act (BA) significantly rationalised banking regulation by removing the Domestic Banking Unit and the Asian Currency Unit divide, and consolidated the licensing and regulation of merchant banks under the BA. Other amendments include the enhancement of MAS’ supervision of the banking sector, specifically in areas such as the revocation of bank licences and regulation of outsourcing arrangements.

MAS issued an information paper on banks’ collateral management practices

8 August 2019

The paper highlighted sound industry practices, and set out MAS’ expectations in three areas: collateral management and portfolio monitoring, valuer selection, and valuation practices. This was the third of a series of credit thematic reviews, which taken together covered key controls of the credit life cycle, relating to credit underwriting, credit review and collateral management.

MAS issued an Enhanced Insurance Valuation and Capital framework to improve the risk coverage and risk sensitivity of the framework

31 March 2020

The Insurance (Valuation And Capital) (Amendment) Regulations 2020 and New MAS Notice 133 on Valuation and Capital Framework for Insurers (“RBC 2”) took effect on 31 March 2020. RBC 2 enhanced policyholder protection by requiring insurers to hold capital for a more comprehensive range of risks such as insurance catastrophe and operational risks and at a higher target confidence level than the previous capital framework.  The enhanced framework also provided more clarity on the supervisory actions that MAS might take when insurers do not meet certain specified solvency levels.