Singapore has announced new liquidity requirements as part of measures to make the local banking system more resilient. Minister of Trade and Industry, Lim Hng Kiang, also said the Monetary Authority of Singapore (MAS) will issue a consultation paper on how it plans to regulate foreign banks considered to have a significant retail presence in Singapore. Mr Lim, who is also deputy chairman of MAS, made the announcements this evening at an Association of Banks in Singapore dinner. Under the proposed changes, foreign banks with a market share of over three per cent of resident non-bank deposits, and more than 150 thousand small depositors will be asked to incorporate their retail operations locally if they have not already done so. Such banks -- called domestic systematically important banks -- will have to hold two percentage points of capital above the international Basel III regulatory minimum. They will also be required to have well-developed recovery and resolution plans. Some foreign banks in Singapore are already locally incorporated, for example Citibank and Standard Chartered. Most, however, operate branches, giving the MAS less control of their business. 938LIVE/ av
Posted on: Tue, 24 Jun 2014 13:24:33 +0000
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