On 8 June 2023, the Monetary Authority of Singapore (“MAS“) issued Circular PPD 08/2023 (“Circular“) on “Implementation Timeline for the Final Basel III Reforms in Singapore”.
The Circular details the finalised implementation timeline for the final Basel III reforms for locally-incorporated banks.
Most of the final Basel III reforms in Singapore will come into effect from 1 July 2024.
In particular, 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:
(a) For all standards other than the revised market risk and credit valuation adjustment (“CVA”) standards: with effect from 1 July 2024;
(b) 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; and
(c) For the output floor transitional arrangement: to commence from 1 July 2024 and reach full phase-in on 1 January 2029.
By way of background, MAS issued Circular PPD 11/2022 dated 19 December 2022 which covered the submission of reporting schedules via MAS’ data collection gateway (“DCG“). The implementation timeline reflects Singapore’s commitment to fully implement the Basel III reforms, and allows the industry sufficient time for proper implementation of systems needed to adopt the revised framework, including for regulatory reporting via MAS’ DCG.
For more information, please refer to Circular PPD 08/2023 available here.
