Regulatory Alerts2019-08-14
Added · Updated
Exposures to Single Counterparty Groups for Banks Incorporated in Singapore
This Notice applies to banks incorporated in Singapore (Reporting Banks) and sets limits on their exposures to single counterparty groups. Reporting Banks must not permit aggregate exposures to any single counterparty group to exceed 25% of their Tier 1 capital at both solo and banking group levels. For Singapore-headquartered Global Systemically Important Banks (G-SIBs), this limit is 15% for exposures to other G-SIBs or connected counterparty groups including a G-SIB, with a 12-month grace period for newly designated G-SIBs becoming effective on or after 1 July 2021. Additionally, Reporting Banks must conduct due diligence to identify economically dependent persons if aggregate exposures to a counterparty exceed 5% of Tier 1 capital and establish internal limits for exposures to G-SIFIs or D-SIBs.
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