Regulatory Alerts2022-07-20
Added
Notice 606 Provision for and Writing Off of Bad Debts
The Monetary Authority of Singapore issued Notice 606 to establish requirements for all banks in Singapore regarding the provision for and writing off of bad debts. The regulation mandates that banks maintain adequate provisions for bad and doubtful debts and seek regulatory approval before writing off bad debts to certain related parties. This notice was cancelled with effect from 21 July 2022, having previously governed credit risk management practices such as maintaining credit files and determining credit loss allowances.
Notices
Last Revised Date: 20 July 2022
Notice 606 Provision for and Writing Off of Bad Debts [Cancelled with effect from 21 July 2022]
Requirements for all banks in Singapore when making provisions for and writing off bad debts.
Credit Risk
Issued pursuant to:
Banking Act (Cap. 19) section 23
and section 55
Applies to:
Full Bank (Locally Incorporated)
,
Full Bank (Branch)
,
Wholesale Bank (Branch)
,
Wholesale Bank (Locally Incorporated)
View Notice
Notice 606 Provision for and Writing Off of Bad Debts [Cancelled with effect from 21 July 2022]
(63 KB)
This notice sets out the requirements for all banks in Singapore to:
Maintain adequate provisions for bad and doubtful debts.
Seek MAS' approval before writing off bad debts to certain related parties.
01 Jan 2005 MAS Notice 606 (Amendment) 2004 takes effect.
11 Nov 2002
MAS Notice 606 dated 11 November 2002 is issued.
11 Nov 2002
MAS Notice 606 dated 21 February 1978 is cancelled.
21 Jul 2022
MAS Notice 606 dated 11 November 2002 (43.9 KB) is cancelled.
Requirements for banks on maintaining credit files, grading credit facilities and determining credit loss allowance.