The new requirements will apply only to systemically important institutions in Singapore. These are expected in the main to be banks, but may also be insurers or other institutions. Those caught will be notified in writing by MAS, and will then in summary need to:
- Assign the role of overseeing its recovery planning programme to an Executive Officer.
- Put in place a Recovery Plan which will act as a guide to the bank in times of distress. Local banks will need to do this on a consolidated basis, whereas branches of foreign banks may be able to leverage off their group plan.
- Provide the necessary information and data to MAS to assist the Regulator to create a resolution plan (that is, to assist a bank in distress without severe systemic disruption and protecting the institution’s systemically important functions).
- Immediately inform MAS if the bank’s viability is in question.
How Bovill can help
If you expect to be a systemically important institution in Singapore, Bovill can help you to devise an approach to meeting the expected requirements of the new regime.