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29 May 2019

On 7 May 2019, the Monetary Authority of Singapore (“MAS”) released a consultation paper on “Proposed Implementation of the Final Basel III Reforms in Singapore”. The consultation closes on 8 July 2019.

Feedback is sought on proposed amendments to the risk-based capital requirements and leverage ratio requirements for Singapore-incorporated banks. The proposed revisions take into account the final Basel III reforms published by the Basel Committee on Banking Supervision (“BCBS”), namely:

  • “Basel III: Finalising post-crisis reforms”, published in December 2017, which sets out revised standards for credit risk, credit valuation adjustment, operational risk, output floor and the leverage ratio; and 
  • “Minimum capital requirements for market risk”, published in January 2019.

MAS proposes to revise the capital requirements for Singapore-incorporated banks to align with the Basel III reforms, and to implement these revisions from 1 January 2022.

The consultation paper details MAS’ policy proposals for implementation of specific aspects of the Basel III reforms, covering credit risk, market risk, operational risk, the output floor, and the leverage ratio.

Reference materials

The following materials are available on the MAS website www.mas.gov.sg:

 

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