30 May 2018

On 17 May 2018, the Monetary Authority of Singapore (“MAS”) issued the following revised notices:

  • MAS Notice 610 to Banks on “Submission of Statistics and Returns”
    (“MAS Notice 610”)
  • MAS Notice 1003 to Merchant Banks on “Submission of Statistics and Returns” (“MAS Notice 1003”)

The revised MAS Notices 610 and 1003 set out the revised reporting standards for banks and merchant banks in Singapore. These changes will take effect on
1 October 2020 and are aligned with MAS’ objectives to collect data in machine-readable format and to reduce duplicate data submissions by financial institutions (“FIs”).

The key changes to the regulatory requirements include:

  • Collecting more granular data of banks’ assets and liabilities by currency, country and industry. This allows for better identification of potential risks to the banking system.
  • Rationalising the collection of data on RMB business activities and deposit rates. The standardised requirements will provide greater consistency and reusability of the data.
  • Removing the distinction between the Domestic Banking Unit (“DBU”) and Asian Currency Unit (“ACU”) (“DBU-ACU divide”) and for banks to report their regulatory returns in Singapore dollar and foreign currency instead. MAS has stated that legislative amendments to remove the DBU-ACU divide will be made in due course and will take effect at the same time as the revised MAS Notices 610 and 1003.

MAS had shared the implementation timeline with all banks and merchant banks in Singapore via a circular dated 29 March 2018. MAS had also provided the finalised template for their data submissions. This will provide banks with 24 months to make the necessary changes to their systems and processes in order to meet the new requirements. Banks and merchant banks may continue to use the existing reporting forms for data submission prior to 1 October 2020.

MAS consultation papers and responses

The issuance of the revised MAS Notices 610 and 1003 and the removal of the DBU-ACU divide follow from various MAS public consultations:

  • On 31 December 2014, MAS issued the first consultation paper on proposed revisions to MAS Notices 610 and 1003.
  • On 2 August 2015, MAS issued a consultation on the proposed removal of the DBU-ACU divide (“DBU-ACU Consultation Paper”). MAS issued its response to feedback received on the DBU-ACU Consultation Paper on 10 February 2017.
  • On 10 February 2017, MAS issued a second consultation paper (“Second Consultation Paper”) on proposed changes to MAS Notices 610 and 1003.
    At the same time, MAS issued its response to feedback received on the first consultation paper issued on 31 December 2014.

MAS issued its response to feedback received on the Second Consultation Paper on 17 May 2018 (“Second Consultation Paper Response”).

In the Second Consultation Paper Response, MAS stated it will be proceeding with the six-month parallel run it had proposed as this will help to mitigate the risk of a direct cutover. The parallel run will provide sufficient data points for MAS to make comparisons of the existing and revised returns.

MAS had also proposed that in the interim before the revised MAS Notices 610 and 1003 take effect, banks consider booking only Singapore dollar transactions in their DBU Book. Given the operational difficulties expressed by the industry, MAS has decided not to pursue this proposal.

Implementation timeline

In its Second Consultation Paper Response, MAS has provided a table summarising the implementation timeline including the six-month parallel run and removal of the DBU-ACU divide.

Reference materials

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

 

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