Regulatory Alerts2025-12-19
Added · Updated
Overview of Capital Adequacy Regime for Locally Incorporated Authorized Institutions
Version 5 of the Supervisory Policy Manual CA-G-1 takes effect on 1 January 2026, aligning with the commencement of the Banking (Capital) (Amendment) Rules 2025. The document sets out the Monetary Authority’s policy on capital adequacy for locally incorporated authorized institutions, defining the framework for calculating capital adequacy ratios and leverage ratios. It establishes minimum requirements of 4.5%, 6%, and 8% for Common Equity Tier 1, Tier 1, and Total capital ratios respectively, alongside a minimum leverage ratio of 3%. The manual details solo and consolidated calculation methodologies, risk-weighting frameworks, capital buffers, and supervisory review processes for compliance.
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