PPD 10/2023: Revised MAS Notice 637 on Risk Based Capital Adequacy Requirements for Banks Incorporated in Singapore to Implement Final Basel III Reforms

PPD 10/2023 20 September 2023 To the Chief Executive Officers of All Locally-incorporated Banks Dear Sir/Madam REVISED MAS NOTICE 637 ON RISK BASED CAPITAL ADEQUACY REQUIREMENTS FOR BANKS INCORPORATED IN SINGAPORE, TO IMPLEMENT THE FINAL BASEL III REFORMS MAS has published today the revised MAS Notice 637 on risk based capital adequacy requirements for banks incorporated in Singapore to implement the final Basel III reforms. 2 MAS has also published our responses to feedback received pertaining to the following consultation papers on revisions to MAS Notice 637: (a) Consultation paper on draft standards for operational risk capital and leverage ratio requirements on 17 December 2020; (b) Consultation paper on draft standards for credit risk capital and output floor requirements on 25 March 2021; (c) Consultation paper on draft standards for market risk capital and capital reporting requirements published on 13 September 2021; and (d) Consultation paper on draft public disclosure requirements for regulatory capital published on 30 March 2022. 3 Where the bank intends to seek regulatory approval for certain rules in line with the requirements of the revised MAS Notice 637, the bank is advised to engage MAS on its intended applications as soon as possible to facilitate our review process.

2 4 Please contact Lydia Ng at 6229 8913 / Lydia_NG@mas.gov.sg, and Alan Teo at 6229 9718 / Alan_TEO@mas.gov.sg for any queries. Yours faithfully ANDREW TAN EXECUTIVE DIRECTOR PRUDENTIAL POLICY Enclosures – (1)