MAS Notice 608 Disclosure in Financial Statements

MAS NOTICE 608

01 Mar 2006 *Last revised on 21 December 2020

NOTICE TO BANKS BANKING ACT, CAP. 19

Disclosure in Financial Statements 1 This Notice is issued pursuant to section 55(1) of the Banking Act (Cap. 19) [the Act] and applies to all banks in Singapore1 . [MAS Notice 608 (Amendment) 2020] Definitions

2 For the purposes of this Notice, "Accounting Standards" has the same meaning as in section 4 of the Companies Act (Cap. 50). [MAS Notice 608 (Amendment) 2020] 3 The expressions used in this Notice shall, except where expressly defined in this Notice or where the context otherwise requires, have the same meanings as in the Act. Disclosure Requirements Applicable to All Banks 4 [deleted by MAS Notice 608 (Amendment) 2020] 5 Every bank in Singapore must, apart from complying with the requirements set out in the Companies Act, including the disclosure requirements specified in the Accounting Standards, disclose in its financial statements, the gross aggregate amount of all credit facilities granted by the bank that are classified as sub-standard, doubtful or loss under MAS Notice 612 on Credit Files, Grading and Provisioning. [MAS Notice 608 (Amendment) 2020] 1 This Notice sets out certain disclosure requirements that apply to banks in Singapore in addition to the requirements relating to financial statements as specified in the Companies Act, including the Accounting Standards prescribed under the Companies Act. The presentation and layout of the financial statements is a matter for banks to decide in consultation with their auditors. Banks may disclose other information in their financial statements, in addition to those specified in this Notice.

Disclosure Requirements Applicable to Banks Incorporated in Singapore

6 A bank in Singapore that is incorporated in Singapore must disclose the following information in its financial statements: [MAS Notice 608 (Amendment) 2020] (a) Geographical Analysis - an analysis of the total assets and total income or profit before or after tax according to the following geographical areas, which must be based on the location of the branch or office booking the assets or reporting the results: (i) Singapore; (ii) other ASEAN countries; (iii) other Asia Pacific countries; and (iv) the rest of the world;

[MAS Notice 608 (Amendment) 2020] (b) Industrial Analysis - an analysis of the loans and advances according to the following industry groups: (i) manufacturing; (ii) building and construction; (iii) housing; (iv) general commerce; (v) transport, storage and communication; (vi) financial institutions; (vii) professional and private individuals (except housing loans); and (viii) others; (c) Maturity Analysis - an analysis of loans (bank and non-bank) and deposits (bank and non-bank) according to the following maturity bands, which must be based on the remaining period to the contractual maturity date on the date of the balance sheet:

(i) maturing within 7 days; (ii) maturing after 7 days but within 1 month; (iii) maturing after 1 month but within 3 months; (iv) maturing after 3 months but within 1 year; (v) maturing after 1 year but within 3 years; (vi) maturing after 3 years.

[MAS Notice 608 (Amendment) 2020]

7 A bank in Singapore that is incorporated in Singapore must, in addition to the requirements specified in paragraphs 5 and 6, disclose the following information as supplementary information to its financial statements: [MAS Notice 608 (Amendment) 2020] (a) Capital Adequacy Ratio - the following information on the capital adequacy ratio and components as defined in MAS Notice 637 on Risk Based Capital Adequacy Requirements for Banks Incorporated in Singapore:

(i) Common Equity Tier 1 Capital; (ii) Additional Tier 1 Capital; (iii) Tier 1 Capital; (iv) Tier 2 Capital; (v) Capital ratios; and (vi) Risk-weighted assets;

[MAS Notice 608 (Amendment) 2020] (b) Financial Review - a financial review section covering subjects such as business description, analyses of results, risk management and any other pertinent information. Disclosure Requirements Applicable to Banks Incorporated Outside Singapore 8 A bank in Singapore that is incorporated outside Singapore must, in its financial statements that are lodged in accordance with section 373(1) of the Companies Act:

(a) include information on the capital adequacy ratio of its head office; (b) where applicable, disclose the fact that in the event of receivership, winding up proceedings or such equivalent proceedings of the bank, the regulatory authority in the country where the bank is incorporated requires its head office to confer a lower priority in the repayment of deposits, to depositors of the branches of the bank located outside of the home country, as compared to depositors of the bank in its home country.

[MAS Notice 608 (Amendment) 2020] Commencement Date of Notice 9 This Notice shall take immediate effect. MAS Notice 608 dated 11 November 2002 is cancelled with immediate effect.

*Notes on history of amendments:

1. MAS Notice 608 dated 11 November 2002 is cancelled with effect on 1 March 2006.
2. MAS Notice 608 dated 1 March 2006 takes effect on 1 March 2006.
3. MAS Notice 608 (Amendment) 2020 dated 21 December 2020 takes effect on 22 December