MAS issues circular on implementation timeline for the final Basel III reforms in Singapore

27 June 2023

On 8 June 2023, MAS issued Circular PPD 08/2023 titled “Implementation timeline for the final Basel III reforms in Singapore” (“Circular”).

Addressed to the chief executive officers of all locally-incorporated banks, the Circular provides the finalised implementation timeline for the final Basel III reforms in Singapore.

The Circular states that most of the final Basel III reforms in Singapore will come into effect from 1 July 2024. Specifically, the requirements in the revised MAS Notice 637 on Risk Based Capital Adequacy Requirements for Banks Incorporated in Singapore will come into effect as follows:

  • For all standards other than the revised market risk and credit valuation adjustment (“CVA”) standards: With effect from 1 July 2024.
  • For the revised market risk and CVA standards: With effect from 1 July 2024 for compliance with supervisory reporting requirements, and with effect from 1 January 2025 for compliance with capital adequacy and disclosure requirements.
  • For the output floor transitional arrangement: To commence from 1 July 2024 and reach full phase-in on 1 January 2029:
    • 50% with effect from 1 July 2024;
    • 55% with effect from 1 January 2025;
    • 60% with effect from 1 January 2026;
    • 65% with effect from 1 January 2027;
    • 70% with effect from 1 January 2028; and
    • 5% with effect from 1 January 2029.

The finalised implementation timeline reflects Singapore’s commitment to fully implement the final Basel III reforms in a timely manner, while allowing the industry sufficient time for proper implementation of systems needed to adopt the revised framework, including for regulatory reporting via MAS’ Data Collection Gateway (“DCG”). MAS had issued Circular PPD 11/2022 dated 19 December 2022 on the submission of reporting schedules via MAS’ DCG and the timeline in relation to the implementation of the final Basel III reforms in Singapore.

Reference materials

Circular PPD 08/2023 and Circular PPD 11/2022 are available on the relevant webpage of the MAS website www.mas.gov.sg.