29 August 2019
On 8 August 2019, the Monetary Authority of Singapore (“MAS”) released an Information Paper on “Thematic Review of Collateral Management Standards and Practices of Corporate Lending Business” (“Information Paper”).
The Information Paper sets out MAS’ key observations and identifies areas of improvement for banks following its thematic review on collateral management standards and practices of banks’ corporate lending business in 2018 and 2019.
The Information Paper covers the following themes:
- Governance over collateral management
- Collateral portfolio monitoring
- Valuer selection
- Valuation practices
The Information Paper also sets out MAS’ supervisory expectations and desired outcomes under each theme to facilitate self-assessments, in particular for banks that were not included in the thematic exercise.
This is the third in a series of credit thematic reviews of banks’ corporate loan portfolios, which began in 2015. Taken together, the thematic reviews cover key control elements of banks’ credit life cycle, and highlight sound practices that the industry should benchmark against.
The first phase focused on banks’ credit underwriting standards and practices. In the second phase, MAS focused on banks’ credit review standards and practices. Information papers following the first and second phases were released in 2015 and 2018 respectively.
The following materials are available from the MAS website www.mas.gov.sg:
- Thematic Review of Collateral Management Standards and Practices of Corporate Lending Business
- Infographic - Collateral Management Standards and Practices
Allen & Gledhill Regulatory & Compliance
To assist our clients with compliance matters, our consultancy arm, Allen & Gledhill Regulatory & Compliance, provides a range of services and solutions. Should you have any queries relating to compliance issues arising out of this development, please contact: