Robust Banking and Insurance Sectors
Revised liquidity requirements for banks and merchant banks
24 June 2022
MAS published revised liquidity requirements for banks and merchant banks. The revisions enhanced the clarity of the liquidity requirements, in areas such as the classification of central banks, the manner of computation of qualifying liabilities, and the calculation of the Tier-1 liquid assets requirement under the minimum liquid assets framework. The revisions also incorporated clarifications made by the Basel Committee on Banking Supervision, such as on the treatment of unsecured precious metals liabilities and assets under the liquidity coverage ratio and net stable funding ratio frameworks.
MAS commenced Financial Holding Companies Act 2013
30 June 2022
MAS commenced the FHC Act, which provided a clearer and more robust regulatory framework for FHCs. FHCs are entities with at least one Singapore incorporated bank or licensed insurer, which contributed to at least 50% of the FHC group’s assets, capital, liabilities or revenue. This helped to ensure consistency in the regulatory and supervisory treatment of FHCs and its licensed bank or insurer. The FHC Regulations and Notices were aligned with existing requirements imposed on bank and insurance groups in Singapore.
Cross-border Bank Resolution Crisis Simulation Exercise (CSE)
July 2022
MAS participated, alongside authorities from five other Asian countries, in a cross-border CSE organised by the Financial Stability Institute. The exercise simulated the failure of a fictional bank with significant operations in the countries represented, providing the opportunity for participating authorities to test and enhance their crisis management arrangements, cross-border cooperation and information-sharing.
Information Paper on Operational Risk Management – Management of Third Party Arrangements
5 August 2022
MAS conducted thematic inspections on third party risk management to assess the adequacy of governance and management oversight, due diligence and ongoing monitoring of these arrangements. The information paper highlighted observations from the inspections and set out MAS’ supervisory expectations, including good practices that banks are encouraged to work towards.
Singapore International Reinsurance Conference
31 October 2022
At the Singapore International Reinsurance Conference, Mr Alvin Tan, Minister of State, Ministry of Trade and Industry and Ministry of Culture, Community and Youth, and Board member of MAS, spoke about partnering Singapore’s reinsurance industry to narrow the region’s protection gap, focusing on three key strategies – (i) growing Singapore as a risk financing centre for systemic and structural risks in Asia; (ii) growing Singapore as a hub for alternative risk transfer solutions in Asia; and (iii) transforming insurers into digital and technology champions.
MAS proposed amendments to enhance regulatory regime for insurance activities
4 November 2022
MAS consulted on the proposed amendments to the Insurance Act 1966 and the Insurance (Intermediaries) Regulations, which took into account regulatory and market developments, and align where appropriate, the regulatory framework for insurance with that of other financial activities regulated by MAS. The proposed amendments included a new anti-commingling provision to regulate the conduct of insurance and non-insurance businesses by insurers in Singapore, the introduction of powers to strengthen MAS’ oversight of insurers’ outsourcing arrangements, and to require insurers to restitute their insurance funds for participating and investment-linked policies.
The third edition of the Banking Trust Index for Singapore (BTIS)
13 February 2023
The BTIS, published by The Association of Banks in Singapore with the support of MAS, is a standardised measure of public perception and trust towards major banks in Singapore. The findings from the third run of the survey found that public trust in the Singapore banking industry remained strong and continued to rise since the inaugural survey. The public attributed their trust to the banks’ ability to stay financially resilient throughout the pandemic, and efforts to help customers guard against scams.