Singapore: lending & credit regulation

Who regulates

• Monetary Authority of Singapore

  Primary supervisor for banks, merchant banks, finance companies, and insurers regarding lending activities.

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Core laws & rules

• Banking Act (1970 (as amended))

  The primary legislation governing the licensing and conduct of banking businesses in Singapore, including the granting of credit facilities by banks and merchant banks.

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• Finance Companies Act (1970 (as amended))

  Regulates the licensing and operations of finance companies, including specific restrictions on trade financing and credit facilities to related parties.

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Licensing & registration

• Banking License

  Required for full and wholesale banks to grant residential property loans, unsecured credit, and other facilities.

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• Finance Company License

  Required for finance companies to grant property loans, unsecured credit, and trade financing.

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• Merchant Bank License

  Required for merchant banks to grant property loans, motor vehicle loans, and unsecured credit.

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Restrictions & warnings

• MAS enforces the Total Debt Servicing Ratio (TDSR) framework, limiting monthly debt repayments to a percentage of gross monthly income for property loans.

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• Strict loan-to-value (LTV) limits and tenure restrictions apply to residential property loans granted by banks, finance companies, and insurers.

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• Unsecured non-card credit facilities to individuals are subject to ongoing credit checks, limit management, and quarterly statistical returns.

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• Bridging loans for property purchases are prohibited for unsecured facilities to citizens/PRs with annual incomes below $20,000.

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• Cash rebates assisting borrowers in meeting cash down payments for housing loans are prohibited.

Direction of travel

• MAS continues to refine credit risk management standards, including mandatory fact sheets for borrowers and enhanced provisioning requirements for expected credit losses.

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Sources

1. MAS Notice 1012 Credit Facilities to a Single Borrower or Group of Borrowers · 2026-05-22
2. Notice 656 Exposures to Single Counterparty Groups for Banks Incorporated in Singapore · 2026-05-22
3. Notice 831 Computation of Total Debt Servicing Ratio for Property Loans · 2025-08-21
4. Notice 1115 Computation of Total Debt Servicing Ratio for Property Loans · 2025-08-21
5. MAS Notice 632 Residential Property Loans · 2025-08-21
6. Notice 645 Computation of Total Debt Servicing Ratio for Property Loans · 2025-08-21
7. MAS Notice 1106 Residential Property Loans · 2025-08-21
8. Notice 128 Computation of Total Debt Servicing Ratio for Property Loans · 2025-08-21
9. MAS Notice 825 Residential Property Loans · 2025-08-21
10. MAS Notice 643A Exposures and Credit Facilities to Related Concerns · 2024-07-01
11. MAS Notice 1106A Residential Property Loans Fact Sheet · 2022-12-14
12. MAS Notice 825A Residential Property Loans Fact Sheet · 2022-12-14
13. Notice 115A Residential Property Loans - Fact Sheet · 2022-12-14
14. MAS Notice 632A Residential Property Loans – Fact Sheet · 2022-12-14
15. Notice 606 Provision for and Writing Off of Bad Debts · 2022-07-20
16. Notice 814 Provision for and Writing Off of Bad Debts · 2022-07-20
17. MAS Notice 635 on Unsecured Credit Facilities to Individuals · 2022-05-13
18. Guidelines on the Application of Total Debt Servicing Ratio for Property Loans under MAS Notices 645, 1115, 831 and 128 · 2021-12-15
19. MAS Notice 1005A Credit Files, Grading and Provisioning - COVID-19 · 2021-06-30
20. Notice 1016 Loss Allowance for Expected Credit Losses on Credit Exposures · 2021-06-29
21. MAS Notice 811A Credit Files, Grading and Provisioning - COVID-19 · 2021-06-29
22. MAS Notice 1113: Rules for Motor Vehicle Loans · 2021-06-29
23. MAS Notice 1005 Credit Files, Grading and Provisioning · 2021-06-29
24. MAS Notice 612A Credit Files, Grading and Provisioning - COVID-19 · 2021-06-29
25. Notice SFA 04-N04 Lending of Singapore Dollar to Non-Resident Financial Institutions for CMS Licensees · 2021-06-28
26. Notice 1115A Computation of Total Debt Servicing Ratio for Property Loans · 2021-06-28
27. MAS Notice 1105 Lending of Singapore Dollar to Non-Resident Financial Institutions · 2021-06-28
28. Notice 757 Lending of Singapore Dollar to Non-Resident Financial Institutions · 2021-06-28
29. MAS Notice 1109: Requirements for Merchant Banks Granting Unsecured Non-Card Credit Facilities to Individuals · 2021-06-28
30. Notice 816 Lending of Singapore Dollar to Non-Resident Financial Institutions · 2021-06-28
31. MAS Notice 1106B Residential Property Loans · 2021-06-28
32. Notice 109 Lending of Singapore Dollar to Non-Resident Financial Institutions · 2021-06-28
33. Notice 639 Exposures to Single Counterparty Groups [Cancelled] · 2021-06-11
34. Notice 1004 Exposures and Credit Facilities to Merchant Bank Related Concerns · 2021-06-11
35. Notice 760 Collection of Statistical Returns for Unsecured Credit Facilities · 2021-06-11
36. Notice 759 Collection of Statistical Returns for Credit Cards · 2021-06-11
37. Notice 811 Credit Files, Grading and Provisioning · 2021-03-15
38. MAS Notice 632B Residential Property Loans · 2020-11-06
39. Notice 118: Requirements for Insurers Granting Unsecured Credit Facilities to Individuals · 2020-11-06
40. Notice 831A Computation of Total Debt Servicing Ratio for Property Loans · 2020-11-06
41. Notice 645A Computation of Total Debt Servicing Ratio for Property Loans · 2020-11-06
42. Notice 827 Unsecured Credit Facilities to Individuals · 2020-11-06
43. MAS Notice 115B Residential Property Loans · 2020-11-06
44. MAS Notice 825B Residential Property Loans · 2020-11-06
45. Notice 128A Computation of Total Debt Servicing Ratio for Property Loans · 2020-11-06
46. Notice 642 Motor Vehicle Loans · 2020-05-05
47. MAS Will Not Introduce Collateral Requirement for the Trading of Listed Securities · 2020-02-18
48. Circular on Good Practices in Managing Customers' Credit Risks · 2020-02-18
49. Borrowers Who are Individuals and Who Own Residential Property Gazetted for Acquisition (August 2014) · 2014-09-04
50. MAS Notice 116 Bridging Loans for the Purchase of Immovable Properties · 2013-11-29
51. MAS Notice 633 Bridging Loans for the Purchase of Immovable Properties · 2013-11-29
52. MAS Notice 826 Bridging Loans for the Purchase of Immovable Properties · 2013-11-29
53. MAS Circular on Residential Property Loans for Individuals with Properties Gazetted for Acquisition · 2013-09-03
54. Monetary Authority of Singapore Guidelines on Risk Management Practices – Credit Risk · 2013-03-01
55. Notice 812 Financing of Trade and Inventory · 2012-04-30
56. Notice 805 Credit Facilities to Directors, Employees, Related and Associated Companies · 2007-10-17
57. Notice 820 Credit Facilities to a Single Borrower or Group of Borrowers · 2005-11-21
58. Notice 822 Power of the Authority to Secure Compliance with Sections 23, 26, 27 and 31 · 2005-11-21
59. MAS Requirement for Financial Institutions to Align HDB Resale Flat Valuations with CPFB Measures · 2005-03-01
60. MAS Notice 1107 Bridging Loans for the Purchase of Immovable Properties · 2021-06-28