MAS Guidelines on Risk Management Practices and Islamic ...

MAS published Notices 1108 and 1001 for merchant banks, revised guidelines on the risk management practices of Board of Directors and senior ... Insights Solutions Learning Events About Insights ContentFormat PopularTopics ViewAllInsights Solutions Asset&LiabilityManagement CreditOrigination CreditRisk Data Economic Insurance Investments&Pensions LearningSolutions PortfolioManagement Regulatory&Accounting StructuredFinance Learning LearningSolutions CoursesByMarketSegment CoursesByTopicArea TRENDINGNOW LEARNMOREABOUTVIRTUALCLASSROOMCOURSES About OurCompany OurPeople OurNetworks CompanyNews ViewAllPressReleases ContentFormat Article Presentation Webinar&Video Whitepaper PopularTopics Asset&LiabilityManagement BankAsset&LiabilityManagementSolutions Buy-SideAsset&LiabilityManagementSolutions FeaturedProduct ViewA-ZProductList CreditOrigination CreditAssessment CreditDecisioning CreditMonitoring StructuredFinanceOrigination FeaturedProduct ViewA-ZProductList CreditRisk CreditResearch CreditRiskAdvisoryServices CreditRiskModeling RiskModelValidationServices FeaturedProduct ViewA-ZProductList Data DataTypes DataVisualization DataWarehouse EconomicData FinancialData NewsData PerformanceData RiskData SupplierRiskData FeaturedProduct ViewA-ZProductList Economic EconomicAdvisory EconomicData EconomicForecasts EconomicResearch EconomicScenarios EconomicWorkstations FeaturedProduct ViewA-ZProductList Insurance BusinessInsight EconomicCapital InsuranceAsset&LiabilityManagement InsuranceRegulatoryReporting RegulatoryCapital Valuation FeaturedProduct ViewA-ZProductList Investments&Pensions AssetAllocation FinancialPlanning InvestmentGovernance&Suitability InvestmentProductDesign Multi-AssetPortfolioManagement PensionPlan,Endowments,andConsultants PerformanceAttribution FeaturedProduct ViewA-ZProductList LearningSolutions AboutLearningSolutions AllCourses TargetedSolutionsforCompanies CoachDiagnosticTool FeaturedProduct ViewA-ZProductList PortfolioManagement Buy-SidePortfolioManagement CreditEconomicCapital PortfolioOptimization StrategicCapitalPlanning FeaturedProduct ViewA-ZProductList Regulatory&Accounting AllowanceforLoan&LeaseLosses(ALLL) BaselI,II,III CurrentExpectedCreditLossModel(CECL) InternalCapitalAdequacyAssessmentProgram(ICAAP) IFRS17InsuranceContracts IFRS9 LiquidityCompliance RegulatoryCapital RegulatoryReporting SolvencyII SimplifiedSupervisoryFormulaApproach(S)SFA StressTesting SystemicRisk FeaturedProduct ViewA-ZProductList StructuredFinance Buy-Side Issuers,Trustees&Lenders Risk&Regulatory Sell-Side FeaturedProduct ViewA-ZProductList LearningSolutions AboutLearningSolutions AllCourses TargetedSolutionsforCompanies CoachDiagnosticTool CoursesByMarketSegment CommercialBanking CorporateBanking CreditUnion InvestmentBanking RetailBanking SMEBanking WealthManagement CoursesByTopicArea Credit&Lending Industry&SectorAnalysis DebtMarketIssuance,Analysis&Investing Sales&Service/RelationshipManagement Coaching&Practice UniversalBanking Certifications OurCompany AboutMoody'sAnalytics RegionalLocations PressReleases Recognition OurPeople Experts Leadership JoinUs OurNetworks ConnectWithUs PartnerAlliance By RegulatoryNews June28,2021 RegulatoryCapital MASpublishedNotices1108and1001formerchantbanks,revisedguidelinesontheriskmanagementpracticesofBoardofDirectorsandseniormanagementoffinancialinstitutions,andupdatedguidelinesontheapplicationofbankingregulationstoIslamicbanking.BoththeguidelineswilltakeeffectonJuly01,2021.TheguidelinesonriskmanagementpracticessetoutcorporategovernancerolesoftheBoardofDirectorsandseniormanagementofafinancialinstitutioninensuringasoundriskmanagementcultureandenvironment.TheseguidelinescoverrolesandresponsibilitiesoftheBoardandseniormanagementpertainingtoriskmanagement,riskcultureandriskappetite,riskmanagementsystemsandframework,andreportingtoMAS. Theguidelinesoncorporategovernancepractices highlightthattheBoardshouldensurethatseniormanagementmaintainsasoundsystemofriskmanagementandinternalcontrolstosafeguardstakeholders’interestsandtheinstitution’sassets,andshoulddeterminethenatureandextentofthesignificantriskswhichtheBoardiswillingtotakeinachievingitsstrategicobjectives.TheBoardandseniormanagementshouldunderstandtheinstitution’sbusinessstrategy,natureofthebusinessactivities,newproducts,materialmodificationstoexistingproducts,andmajormanagementinitiativesandtheirassociatedrisks.SeniormanagementshouldprovidetheBoardwithinformationonallpotentiallymaterialrisksfacingtheinstitution,includingthoserelevanttotheinstitution’sriskprofile,capitalandliquidityneeds.TheguidelinesfurthermentionthattheBoardandseniormanagementshouldnotifyMASinadvanceofanysubstantivechangesintheinstitution’sbusinessactivities,structureandoverallcondition,orassoonastheybecomeawareofanymaterialadversedevelopments,includingbreachoflegalorprudentialrequirements.MASshouldalsobenotifiedofmaterialinformationthatmaynegativelyaffectthesuitabilityofarelevantshareholder,andthefitnessandproprietyofaBoardmemberoramemberoftheseniormanagement. TheguidelinesonapplicationofbankingregulationstoIslamicbanking covergeneralapproachofMAStotheregulationofIslamicbanking,providingguidanceontheadmissionframeworkforfinancialinstitutionsintendingtoofferIslamicfinancialservicesandtheregulatorytreatmentforIslamicbankingproducts,includingthecapitaltreatmentofsuchproducts.TheseguidelinesonlycovertheapplicationoftheBankingAct(Cap19),BankingRegulationsandwrittendirectionsissuedpursuanttotheBankingAct,anddonotcovertheapplicationofotherlegislation,suchastheSecuritiesandFuturesActandFinancialAdvisersAct. TheseguidelinesapplytoallfinancialinstitutionsofferingIslamicbankinginSingapore.  Inaddition,MASpublished Notices1108and1001formerchantbanks,whichwilltakeeffectfromJuly01,2021.MASNotice1108setsoutrequirementsformerchantbanksonprotectingtheconfidentialityofcustomerinformationinalloutsourcingarrangements.Thisnoticeappliestoallmerchantbanks.Itsetsouttheconditionsforoutsourcingoperationalfunctionswhensuchfunctionsinvolvedisclosureofcustomerinformation,andwhichwillbeperformedoutsideSingapore.MASNotice1001setsoutdefinitionsfortheterms"capitalfunds"and"netheadofficefunds"formerchantbanks. MASalsoannouncedthatitwillbecancellingguidelinesforoperationofmerchantbankswitheffectfromJuly01,2021.    EffectiveDate:July01,2021(Guidelines) Keywords: AsiaPacific,Singapore,Banking,MerchantBanks,IslamicBanking,Governance,RegulatoryCapital,BankingAct,ESG,MAS MaríaCañamero Skilledmarketresearcher;growthstrategist;successfulgo-to-marketcampaigndeveloper NicolasDegruson Workswithfinancialinstitutions,regulatoryexperts,businessanalysts,productmanagers,andsoftwareengineerstodriveregulatorysolutionsacrosstheglobe. TrevorHowes IFRS17technicaladvisor;AXISactuarialmodelingsystemexpert;extensiveexperienceinlifeinsuranceandlifereinsurance,withfocusonmodeling,valuation,andfinancialreporting ViewRelatedExperts PreviousArticle IOSCOPublishesReportonSustainability-RelatedIssuerDisclosures NextArticle MASLaunchesGlobalChallengeforRetailCBDCSolutions News FDICPublishesDraftPrinciplesonClimate-RelatedFinancialRisks TheFederalDepositInsuranceCorporation(FDIC)isconsultingonthestatementonprinciplesforthemanagementofclimateriskbylargefinancialinstitutions,withcommentperiodendingonJune3,2022. April04,2022 WebPage RegulatoryNews News ISSBProposesStandardsonSustainabilityandClimateDisclosures TheInternationalSustainabilityStandardsBoard(ISSB)proposedgeneralsustainability-relateddisclosurerequirementsandtheclimate-relateddisclosurerequirements. March31,2022 WebPage RegulatoryNews News NGFSReportMakesRecommendationstoAddressBiodiversityLoss TheNetworkofCentralBanksandSupervisorsforGreeningtheFinancialSystem(NGFS)publishedtheannualreportfor2021,astatementonnature-relatedfinancialrisks,andareportonactiontakenonbiodiversityloss. March31,2022 WebPage RegulatoryNews News BISHubDevelopsPrototypeSupervisoryAnalyticsPlatform TheBankforInternationalSettlements(BIS)publishedworkingpapersandtheSingaporeCenterofitsInnovationHubdevelopedtheprototypeofasupervisoryanalyticsplatform,incollaborationwiththeMonetaryAuthorityofSingapore(MAS). March31,2022 WebPage RegulatoryNews News BoEandPRASeekViewsonHQLAUsabilityIssues TheBankofEngland(BoE)andthePrudentialRegulationAuthority(PRA)areseekingviews,untilJune30,2022,onissueswithrespecttotheusabilityofhigh-qualityliquidassets(HQLA)heldbybanks. March31,2022 WebPage RegulatoryNews News APRASeeksViewsonDataCollectionRoadmapforRegulatedEntities TheAustralianPrudentialRegulationAuthority(APRA)publishedadiscussionpaperthatoutlinesitschangingapproachtodatacollectionandthefive-yeardatacollectionimplementationroadmap,withthecommentperiodendingonJune24,2022. March31,2022 WebPage RegulatoryNews News FSBSetOutWorkDeliverablesfor2022 TheFinancialStabilityBoard(FSB)setoutitsworkprogram,providinganindicativetimelineofthekeydeliverablesfor2022. March31,2022 WebPage RegulatoryNews News BCBSSetsOutFindingsonOutsourcingandConcentrationRiskPractices Inarecentstatement,theBaselCommitteeonBankingSupervision,orBCBS,summarizedfindingsoftheoutreachsessionswithprivate-sectorparticipantsandsupervisorsfromvariousjurisdictionswithrespecttothepracticesforthird-andfourth-partyriskmanagementandconcentrationrisk. March30,2022 WebPage RegulatoryNews News OSFIStatementsAddressBCAR,CultureRiskManagementandDEIStrategy TheOfficeoftheSuperintendentofFinancialInstitutions(OSFI)isseekingcommentsoneffectivecultureriskmanagement,setoutexpectationsforInternalCapitalAdequacyAssessmentProcess(ICAAP)submission March28,2022 WebPage RegulatoryNews News IOSCOReportDiscussRegulatoryImplicationsofDecentralizedFinance TheInternationalOrganizationofSecuritiesCommissions(IOSCO)publishedareportthatoffersageneralunderstandingofdecentralizedfinance,includingtheareasofpotentialregulatoryconcern. March24,2022 WebPage RegulatoryNews RESULTS1-10OF8049 RequestMoreInformationMeetOurExperts