Previously, the Monetary Authority of Singapore (“MAS“) issued Circular PPD 08/2023 detailing the finalised implementation timeline for the final Basel III reforms for banks incorporated in Singapore (“Reporting Banks“). To implement the risk-based capital adequacy requirements for Reporting Banks, MAS issued the revised MAS Notice 637 and the accompanying Circular PPD 10/23. The revised MAS Notice 637 takes effect on 1 July 2024. MAS Notice 637 applies to all locally-incorporated banks and: (a) establishes the capital adequacy ratios and leverage ratio requirements for a Reporting Bank and the methodologies a Reporting Bank must use for calculating these ratios; (b) sets out the requirements in respect of the internal capital adequacy assessment process of a Reporting Bank under the supervisory review process; and (c) specifies the minimum disclosure requirements for a Reporting Bank in relation to its capital adequacy, with a view to enhancing market discipline. Where a bank intends to seek regulatory approval for certain rules in line with the requirements of the revised MAS Notice 637, the bank is advised to engage MAS on its intended applications as soon as possible to facilitate MAS’ review process. For the background on the changes to MAS Notice 637, please refer to the four consultation papers that MAS has earlier issued:
On 20 September 2023, MAS published its Response to the feedback received on the four consultation papers, available here. |
Revised MAS Notice 637 on Risk-Based Capital Adequacy Requirements for Singapore-Incorporated Banks to Implement Final Basel III Reforms (Effective 1 July 2024)
- Revised MAS Notice 637 on Risk-Based Capital Adequacy Requirements for Singapore-Incorporated Banks to Implement Final Basel III Reforms (Effective 1 July 2024)
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Deputy Head, Financial Institutions Group
+65 6232 0482
Singapore,
