Regulatory Alerts2021-06-29
Added
MAS Notice 1005 Credit Files, Grading and Provisioning
The Monetary Authority of Singapore issued Notice 1005 to establish regulatory requirements for all merchant banks regarding credit risk management. The notice mandates the maintenance of comprehensive credit files, the implementation of objective credit facility grading systems, and the recognition of loss allowances for expected credit losses. These standards aim to ensure adequate provisioning for bad and doubtful debts while supporting consistent credit assessment practices across the sector.
Notices
Last Revised Date: 29 June 2021
Notice 1005 Credit Files, Grading and Provisioning
Requirements for merchant banks on maintaining credit files, grading credit facilities and determining credit loss allowance.
Credit Risk
Issued pursuant to:
Banking Act (Cap. 19) section 55(1)
Applies to:
Merchant Bank (Locally Incorporated)
,
Merchant Bank (Branch)
View Notice
Notice 1005 Credit Files, Grading and Provisioning
(254.2 KB)
This notice applies to all merchant banks in Singapore. It covers requirements for:
Maintenance of credit files and the basic information required for objective credit assessment.
Grading of credit facilities.
Recognition of loss allowance for expected credit loss.
Please refer to MAS Notice 1005A for the credit grading treatment in relation to the credit facilities granted support measures by merchant banks in response to the on-going novel coronavirus ("COVID-19") outbreak.
01 Jul 2021 MAS Notice 1005 dated 29 June 2021 takes effect.
01 Jul 2021 MAS Notice 1005 dated 29 December 2017 (last revised on 15 March 2021) (240.7 KB) is cancelled
.
16 Mar 2021
MAS Notice 1005 (Amendment) 2021 (245.5 KB) takes effect.
01 Jan 2018
MAS Notice 1005 dated 29 December 2017 (358.9 KB) takes effect.
01 Jan 2018 MAS Notice 1005 dated 11 March 2005 (41.3 KB) is cancelled.
14 Mar 2005 MAS Notice 1005 dated 01 November 1985 is cancelled.
Requirements for merchant banks submitting returns to MAS, including reporting forms, completion notes and submission timeframe.
Requirement for all merchant banks to maintain adequate provisions for bad and doubtful debts.
Requirements for merchant banks on maintaining credit files, grading credit facilities and determining credit loss allowance.
Consultation number:
P009 - 2017
Start date:
12 May 2017
Closing date:
12 June 2017
MAS response date:
19 October 2017
Establishes the Monetary Authority of Singapore (MAS) and gives it the authority to regulate the financial services sector in Singapore.