In a second reading speech delivered on behalf of Gan Kim Yong, Deputy Prime Minister and Minister-in-charge of the Monetary Authority of Singapore, MAS set out proposed legislation that would authorize it to impose Total Loss Absorbing Capacity requirements on domestic systemically important banks. The bill would also align Singapore’s counter-proliferation financing framework with updated Financial Action Task Force standards. The loss absorbing capacity framework would require domestic systemically important banks to hold additional eligible instruments and other financial resources that could absorb losses during resolution, complementing MAS’ existing power to bail in subordinated creditors. Following consultation, the framework will address required capacity levels, eligible instruments and resources, public disclosures and implementation timing. Separate amendments would expressly extend MAS’ supervision to proliferation financing risks and permit assistance to domestic and foreign authorities supervising those risks, alongside consequential changes to other MAS-administered laws.
Monetary Authority of Singapore advances legislation for bank loss absorbing capacity requirements and proliferation financing oversight
The Monetary Authority of Singapore has advanced legislation enabling it to impose Total Loss Absorbing Capacity requirements on domestic systemically important banks. The bill would also clarify MAS’ supervision of proliferation financing risks and its ability to assist domestic and foreign counterparts, aligning Singapore’s framework with updated Financial Action Task Force standards.