MAS consults on proposed total loss absorbing capacity requirements for domestic systemically important banks in Singapore

25 May 2026

On 13 May 2026, the Monetary Authority of Singapore (“MAS”) published a consultation paper seeking feedback on the proposed framework to impose total loss absorbing capacity (“TLAC”) requirements on domestic systemically important banks (“D-SIBs”) in Singapore, and draft amendments to the Financial Services and Markets Act 2022 (“FSMA”), that will give MAS statutory powers to set out these requirements.

The proposed TLAC requirements aim to improve the loss absorbing and recapitalisation capacity of a D-SIB to facilitate its orderly resolution in a manner which minimises reliance on public funds and without undermining financial stability.

Specifically, MAS seeks views on:

• the external TLAC requirements applicable to local bank D-SIBs;
• the proposal to subject foreign bank D-SIBs to internal TLAC requirements;
• the proposal that CET1 capital used to meet the capital conservation buffer cannot also count towards its TLAC;
• any alternative solutions that could be imposed in lieu of a TLAC requirement to improve the resilience of D-SIBs in crisis situations;
• the eligibility criteria for TLAC instruments;
• the proposal to not allow TLAC instruments issued to retail investors in Singapore to count towards a D-SIB’s TLAC;
• the proposal to give D-SIBs five years, from date of notification, to meet the TLAC requirements;
• the TLAC reporting and disclosure requirements; and
• the draft Division 3 under Part 7 of the FSMA.

Reference materials

The consultation paper is available on the MAS website www.mas.gov.sg.