Regulatory Alerts2021-03-15
Added
MAS Notice 612 Credit Files, Grading and Provisioning
The Monetary Authority of Singapore issued Notice 612 to establish requirements for all banks in Singapore regarding the maintenance of credit files, grading of credit facilities, and determination of credit loss allowances. The regulation mandates objective credit assessment standards and sets specific provisions for locally-incorporated domestic systemically important banks, including minimum credit loss allowance levels and regulatory reserves. This notice supersedes previous iterations and aligns with the Banking Act to ensure consistent risk management practices across the banking sector.
Notices
Last Revised Date: 15 March 2021
Notice 612 Credit Files, Grading and Provisioning
Requirements for banks on maintaining credit files, grading credit facilities and determining credit loss allowance.
Credit Risk
Issued pursuant to:
Banking Act (Cap. 19) section 55
Applies to:
Full Bank (Locally Incorporated)
,
Full Bank (Branch)
,
Wholesale Bank (Branch)
,
Wholesale Bank (Locally Incorporated)
View Notice
Notice 612 Credit Files, Grading and Provisioning
(238.9 KB)
This notice applies to all 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.
The notice also sets out requirements specific to locally-incorporated domestic systemically important banks (D-SIBs) in Singapore, such as a minimum level of credit loss allowances and the setting up of regulatory loss allowance reserves.
Please refer to MAS Notice 612A for the credit grading treatment in relation to the credit facilities granted support measures by banks in response to the on-going novel coronavirus ("COVID-19") outbreak.
16 Mar 2021
MAS Notice 612 (Amendment) 2021 (244.7 KB) takes effect.
01 Jan 2018
MAS Notice 612 dated 29 December 2017 (359.5 KB) takes effect.
01 Jan 2018 MAS Notice 612 dated 11 March 2005 is cancelled. 14 Mar 2005 MAS Notice 612 dated 11 March 2005 (40.8 KB) takes effect. 14 Mar 2005 MAS Notice 612 dated 30 December 2004 is cancelled.
Requirements for banks on submitting returns to MAS, including reporting forms, completion notes and submission timeframe.
Guidelines for all financial institutions covering MAS' general approach to Islamic banking regulations.
Requirements for all banks in Singapore when making provisions for and writing off bad debts.
Requirements for banks on maintaining credit files, grading credit facilities and determining credit loss allowance.
Information paper on banks’ credit review standards and practices for the corporate lending business, including areas where financial institutions should pay additional attention to, and good practices observed during MAS’ thematic review.