Singapore may allow foreign banks to create digital-only units | HT Tech

Singapore may allow foreign banks to create digital-only units

The Monetary Authority of Singapore said it plans to revise rules governing foreign banks with a substantial local presence that may allow them to open digital-only banking subsidiaries.

By:BLOOMBERG
| Updated on: Aug 03 2020, 09:56 IST
FILE PHOTO: The logo of the Monetary Authority of Singapore (MAS) is pictured at its building in Singapore in this February 21, 2013 file photo.  REUTERS/Edgar Su/File Photo
FILE PHOTO: The logo of the Monetary Authority of Singapore (MAS) is pictured at its building in Singapore in this February 21, 2013 file photo. REUTERS/Edgar Su/File Photo (REUTERS)

Under the enhanced framework, the MAS will consider granting an additional full banking license to foreign lenders which substantially exceed its Significantly Rooted Foreign Bank criteria, the central bank said in a statement on Monday.

“This will enable them to have the same flexibility as Singapore-incorporated banking groups to establish subsidiaries, including with joint-venture partners, to operate new or alternative business models such as a digital-only bank,” the statement said.

You may be interested in

MobilesTablets Laptops
27% OFF
Samsung Galaxy S23 Ultra 5G
  • Green
  • 12 GB RAM
  • 256 GB Storage
Google Pixel 8 Pro
  • Obsidian
  • 12 GB RAM
  • 128 GB Storage
Vivo X100 Pro 5G
  • Asteroid Black
  • 16 GB RAM
  • 512 GB Storage
Apple iPhone 15 Plus
  • Black
  • 6 GB RAM
  • 128 GB Storage

Banks around the world have been shutting branches and moving their services online, a trend that will likely be accelerated by the Covid-19 pandemic. Last year, the MAS announced plans to award as many as five new digital banking licenses to non-banks, a move that is expected to create a new generation of rivals for the traditional lenders.

Also read
Looking for a smartphone? To check mobile finder click here.

Read about the ‘strong interest' in Singapore's new digital licenses

The enhanced framework “will strengthen the ability of SRFBs to complement the local banks as anchors to Singapore's financial system,” the MAS said.

In order to determine if the foreign bank substantially exceeds the criteria, the MAS said it will take into account factors such as whether a significant portion of global key appointment holders are based in the country, the creation of a substantial number of jobs or counting a local group as a major shareholder.

The MAS also said that the local subsidiary of Standard Chartered Plc is the first bank to qualify as an SRFB. Under the scheme, which was announced in 2012, Standard Chartered will be able to open as many as 50 places of business across the city state, of which 35 can be branches.

In a statement, Standard Chartered said it welcomed the move and would invest an additional S$5 million ($3.6 million) to boost talent development and re-skilling.

The bank will review its strategy “with a view to invest more and further deepen our presence in Singapore,” Patrick Lee, chief executive officer of Standard Chartered Bank Singapore, said in the statement.

By David Ramli

Catch all the Latest Tech News, Mobile News, Laptop News, Gaming news, Wearables News , How To News, also keep up with us on Whatsapp channel,Twitter, Facebook, Google News, and Instagram. For our latest videos, subscribe to our YouTube channel.

First Published Date: 03 Aug, 09:56 IST
NEXT ARTICLE BEGINS