Regulatory Alerts2000-12-04
Added · Updated
MAS Notice 628 – Asset Securitisation by Banks
The Monetary Authority of Singapore issued this circular to clarify its position on participating banks holding share capital in special purpose vehicles for asset securitisation. While a general prohibition remains to limit reputational risk, the regulator now permits banks to hold redeemable preference shares subject to strict conditions. These conditions require that the shares exhibit debt-like characteristics, the bank holds no more than 10% of the issue, there is no control over the SPV, and the full value is deducted from the bank's capital base.
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