The Monetary Authority of Singapore identified seven banks as important to the country’s financial system and economy and will subject them to stricter supervision and higher capital requirements.
The measures will apply to three local and four overseas lenders, which are DBS Group Holdings Ltd., Oversea-Chinese Banking Corp., United Overseas Bank Ltd., Citigroup Inc., Malayan Banking Bhd, Standard Chartered Plc and HSBC Holdings Plc. Banks that have a significant retail presence in Singapore will be required to incorporate them in the city-state, the MAS said in a statement Thursday.
The banks will need to meet capital requirements that are higher than those of the Basel III regulations. The new framework will strengthen the resilience of Singapore’s banking system by insulating it against “negative spill-overs” should one of the important banks fail, Deputy Managing Director Ong Chong Tee said, according to the statement.
The rules will enhance the stability of Singapore’s financial system, Michael Zink, Citigroup’s Southeast Asian head, said in an e-mailed statement. The company already exceeds the new requirements, he said.