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Reports: Singapore local knowledge global solutions

This factsheet describes the reporting solutions that FRSGlobal provides to financial institutions that
need to meet Singapore regulatory requirements

Introduction SGA product distinct features

The Monetary Authority of Singapore is Singapore's central The product ensures that the regulatory guidelines are
bank. It was set up in 1971 to oversee various monetary implemented in the report and ensures standardisation of
functions associated with banking as well as finance. the reports in conformity with Regulatory norms, thereby
Before its establishment, monetary functions were relieving the individual banker to look into the guidelines of
performed by government departments and agencies. The each report for compliance and concentrating on their
MAS Act gives MAS the authority to regulate all elements business
of monetary, banking and financial aspects of Singapore.
The product is backed up by a Global Data Foundation,
The MAS has been given powers to act as a banker to and which covers the major requirements of Banks across the
financial agent of the Government. It has also been countries and brings uniformity in line with implementation
entrusted to promote monetary stability, and credit and of near standard regulations in Banks for Basel II
exchange policies conducive to the growth of the economy. requirements across the Globe.

In April 1977, the Government decided to bring the Various processes and computations handled in the
regulation of the insurance industry under the wing of the product:
MAS. The regulatory functions under the Securities
Industry Act (1973) were also transferred to MAS in The Product has inbuilt intelligence in form of the
September 1984. coverage process which provides with the logic of:

The MAS now administers the various statutes pertaining Expanding the links between collateral and limit and
to money, banking, insurance, securities and the financial unfolds the complex linkages of loans and their
sector in general. Following its merger with the Board of coverage.
Commissioners of Currency on 1 October 2002, the MAS Ranking: Collaterals are ranked in order of its risk
has also assumed the function of currency issuance. weighting e.g. fixed deposit more „reliable‟ than
corporate guarantee its degree of liquidity e.g. cash
acct is more liquid than stocks. Credit exposures are
MAS reporting requirements also ranked in order of its degree of risk of exposure
e.g. mortgage loan is considered before guarantees.
Reports are classified into Modules based on the reporting Coverage process matches collaterals vs exposures
authority and reporting requirement according to these rankings
Apportionment of the securities among linked loans:
SGMAS BASE SET: SGMAS Base Module the main set This step will apportion the Collaterals against the
of reports (more than 20 group of reports) for Balances and the Facilities. It will take the lowest risk
commercial banks that encompasses balance sheet Cover (smaller ranking no.) and matches against the
information, liquidity requirements, profit and loss highest risk Balance (smaller ranking no.)
Classifying the loans based on coverage of security
SGMAS BIS Module - Singapore Consolidated banking (fully secured loans, partially secured loans and
Statistics unsecured loans).
Ranking of borrowers and depositors based upon the
SGMAS Compliance Module - Singapore Compliance, a total deposit or total borrowing
group of daily reports on collateral, equity investments
and large exposures. Netting process is built effectively to sum up the debit
and credit balances at a product level or group of
SGMAS Top100 Module - a bi-annual set of reports on product level as per the report requirement and the
the top borrowers from a credit institution processing being part of mapping, a background
process, enhances the performance of report allocation.

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Cross Validations: these validations ensure that there is
Additional Intelligence built via line item calculations, data consistency and that basic business rules related to
decision tables and maturity band calculations to data requirement are net
facilitate data allocation.
Regulatory Validations: As prescribed by the regulator,
Time Band Calculations are calculated during mapping. these validation rules are incorporated in the product.
Some of the main maturity bands calculated are Original These validation rules cater to inter and intra report
Maturity , Remaining Maturity, Next Interest Re-pricing, conditions / checks that need to be met in order to
Next Interest Settlement and Next Rollover Date. The validate the data and avoid wrong reporting
calculations are split across calendar and business
dates using the holiday table
Report Delivery
Carry Balance Concept: Some report requires the
qualifying liabilities related data to be reported pertaining Reports can be output in an electronic format as text files
to a past period. The product computes and maintains and emailed to the regulators. The delivery instructions are
the required data on daily basis for use during reporting. made available as a part of reporting requirement.
This reduces the processing load on the reporting date.

The FRSGlobal reporting capability


Provision is made to use exchange rate to convert the
amounts into any currency as per the requirement of
Regulator. FRSGloba‟s Solution enables Reporting Institutions:-

Configurable parameters by the user: Timely completion of regulatory reporting


Consistent data foundation across the extended
Reporting institutions can configure the Entity enterprise
relationships existing during reporting period to help Keep pace with industry regulations and standards
identify connected parties. This configured data is then Centralize cross-border regulatory reporting
used to value connected counter party transactions. Leverage existing system investments
Outsource non-competitive work
The Reporting Institution can define its Head office, Focus on core banking business
branch or subsidiary at the time of installation of product Standardized application
and update it as per their requirements.
FRSGlobal‟s reporting solution provides comprehensive
A requirement by the Regulator is to seek information and fully integrated solution with proven regulatory
grouped by counterparty based upon their holdings in reporting solutions in over 30 countries
other counterparties. As the group configuration differs
from report to report, Reporting Institution can define Auditable and usable
counterparty groups as per individual report The FRSGlobal solution can receive information that is
requirement. similar in granularity to a trade ticket, and combine it into
the formats required for regulatory reports. The final output
Tuning Parameters - This configurable table holds is fully auditable, with a range of drill-down and drill-up
various operating environment variables for FRR. They functions. Users can identify exactly which trades or
must be set according to each site requirements positions are included in the detailed calculation steps that
make up a regulatory report. The system can be configured
MAS Bank Codes - MAS Bank Codes table is for tagging to allow data editing, but all changes are logged and
& identifying those bank counterparties domiciled in tracked, and supervisor sign-off is fully supported.
Singapore to the bank code assigned by MAS. The MAS
Bank Codes are required for 610 Anx 1C or 1003 Anx Accessible
1C reports The information stored and generated by the FRSGlobal
solution is available for use outside of our application. That
User can configure the 2 significant currencies in which is, credit risk, market risk, operational risk and liquidity risk
the Cash flow Reports are to be generated. data can all be ordered and consistently stored. You can
create variance reporting, to compare different reporting
periods or instances of the same report.
Validation Rules
Preserves your investment and supports pillars II
The Singapore product carries out validations at 2 levels. and III
The FRSGlobal solution can also take higher-level

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information and successfully produce the required reports.
For our customers who employ more advanced
approaches, our solution provides a robust method of
storing reported data in a way that can be interrogated and
is secure. It also provides a full set of up-to-date templates
that include validations and a transmission mechanism.
The FRSGlobal solution supports mixtures of standard and
advanced reporting, supplementing modelled approaches
with its own calculation engine to create a single source for
firm-wide reporting.

Multiple business units


Another feature of our reporting is the ability to run
reporting by business unit. Some of our clients use this
information as part of their internal limits and controls
processes.

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Reports

MAS 601/1001 Capital Funds, Net Head Office It reports certain approved assets located in Singapore and the
Funds and Head Office Capital Funds NHOF

Limit imposed Approved Assets under section 9(1)(c)(ii)

Section 9(1)(c)(ii) requires a bank incorporated outside


Singapore to hold net head office funds of not less than $10
million in Singapore in respect of its business in Singapore at all
times, and that no less than $5 million are to be in the form of
assets approved by the Authority.

MAS 610/1003 Submission of Statistics and All banks in Singapore are required to submit to The Monetary
Returns - Monthly Statement Of Assets And Authority of Singapore (MAS) the Bank‟s First Schedule. Returns
Liabilities (ACU AND DBU) Appendix 1 by a bank should cover the operations of all the bank‟s branches
in Singapore. This schedule shows the assets and liabilities of
the bank (including its branches in Singapore) at the close of
business on the last business day of each month. This return
consists of three main appendices. (Appendix 1A, 2A and 3A).

There are several annexes to each appendix. The annexes are


further divided into parts.

MAS 610/1003 App 1 A - Statement of Assets & Core balance sheet information
Liabilities – A-Liabilities
On balance assets and liabilities
MAS 610 App 1 B - Statement of Assets &
Liabilities – B-Assets Off balance commitment and contingencies

MAS 610 App 1 C - Statement of Assets & Off balance memo items (AUM, Collection)
Liabilities – C-Contingents

MAS 610/1003 Annex 1A - Approved Assets and This report shows the approved assets of the banks and the
Capital Funds (for banks incorporated outside capital funds. Only banks incorporated outside Singapore are
Singapore) supposed to report this page. Similar to 601 but combined DBU+
ACU position

MAS 610/1003 Annex 1B - Deposits of Non-Bank Classification of deposit base by size, aggregation of all accounts
Customers of a single depositor before reporting

Special disclosure on top twenty depositors

Classification by deposit types versus SG vs.non SG residents

MAS 610/1003 Annex 1C - Interbank By Counterparty in Singapore (amounts and names of banks in
Indebtedness Singapore with whom the bank has transactions) Amount due
from and due to banks

MAS 610/1003 Annex 1D - Loans and Advances Classification loans and advances by different size band, by
(Including Bills) product, by customer count, new limit granted. Classification of
loans exposure by industries

MAS 610/1003 Annex 1E - Deposits, Loans, Country exposure on customer deposits , loans , investment and

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Interbank Indebtedness and Investments MM exposures

Classified by Country

MAS 610/1003 Annex 1F - Underwriting Activities In this Annex the commitments of the reporting institution related
to underwriting activities is reported

MAS 610/1003 Annex 1G - Derivative Contracts The reporting requirement of the Derivative contracts are split
into trading and non-trading under five broad risk categories

MAS 610/1003 Annex 1H - Assets and Liabilities Cashflow reporting on various on balance assets and liabilities
by Maturity into different maturities buckets

MAS 610/1003 Annex 1I - Breakdown of Financial Classification of financial assets and liabilities into various
Assets, Financial Liabilities and Fair Value portfolios (Trading, FVO, AFS, HTM and hedging )
Gains/Losses

MAS 610/1003 Return on Monthly Foreign All banks are required to submit to the MAS a return on total
Exchange Business Transacted by Banks, foreign exchange business and other derivatives transacted for
Merchant Banks and Asian Currency Units the month.
Appendix 2

MAS 610/1003 App2 PART I: Spot, Forwards and Foreign Exchange Business categorized product –wise – Spots,
FX Swaps Forwards and FX Swaps

MAS 610/1003 App2 PART II: Currency Options Foreign Exchange Business categorized product –wise –
Currency Options

MAS 610/1003 App2 PART III: Currency Futures Foreign Exchange Business categorized product –wise –
Currency Futures

MAS 610/1003 App2 PART IV: FRAS, Interest Foreign Exchange Business categorized product –wise – FRS‟s,
Rate Swaps and Currency Swaps Interest Rate Swaps and Currency Swaps

MAS 610/1003 Quarterly Return on Classified Classification of on and off credit exposures by loan grading, by
Exposures Appendix 3 industries and determination of secured /unsecured portion

MAS 610/1003 App 3 PART I: By Classification Exposures Classified by Account classification on Provision
and Provision

MAS 610/1003 App 3 PART II: Classified Exposures Classified by Industry Type
Exposures by major industry

MAS 610/1003 App 3 PART III: Classified Exposures Classified by Country


Exposures by country

MAS 610/1003 App 3 PART IV: Housing loan to This report gives an indication of the cover available to protect
value Ratio the bank against default of homeowners

MAS1004 - ACU/DBU Credit Facilities To Related Special monitoring related on credit exposures to related parties
Concerns Appendix 1 as stated in s27(1) of the Banking Act

This return covers exposures to Bank directors, staff and related

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companies (include related Banks)

MAS613 - Minimum Liquid Assets This report is the new liquidity reports set for banks in Singapore.
All banks are required to submit the appropriate liquidity returns
as specified in this notice.

Form 1 Minimum Liquid Assets Requirements Report showing the Qualifying Liabilities and Liquid Assets

Form 2 Section 1: Computation of Qualifying Computation of Qualifying Liabilities


Liabilities

Section 2: Liquid Assets


Computation of Liquid Assets

Form 3 Section 1: Top 20 Individual Depositors Top 20 Individual Depositors

Section 2: Top 20 Corporate Depositors

Section 3: Top 20 Interbank Lenders Top 20 Corporate Depositors

Top 20 Interbank Lenders

Form 4 Maturity Analysis of Cashflows Cash Flow Report


(Contractual Basis: Residual Maturity)

Form 5 Maturity Analysis of Cashflows Cash Flow Report


(Behavioural Basis)

Form 6 Daily Cashflow Analysis (Contractual Cash Flow Report


Basis: Residual Maturity)

Form 7 Daily Cashflow Analysis (Behavioural Cash Flow Report


Basis)

637 Risk Based Capital Adequacy Requirements The objective of the Basel II framework was to enhance the
for Banks Incorporated in Singapore soundness and stability of the banking system by aligning the
minimum regulatory capital requirements more closely to the
risks that banks face, and encouraging improvements in banks‟
risk management.

This Notice applies to all Reporting Banks, who are required to


maintain the minimum capital adequacy ratios based on the
proposed methodology to be used for calculating these ratios
(“Pillar 1”). SG MAS additionally provides the flexibility for Bank
to adopt the approach that are commensurate with considering
the complexity and sophistication of its businesses and
operations.

In addition to complying with the minimum regulatory capital

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requirements, Banks are required to ensure whether it has


adequate capital to cover its exposure to all risks.

As part of reporting, the banks are required to provide:

Market participants with information as prescribed under


minimum public disclosures to assist them in forming an
opinion on the risk profile and capital adequacy of a Reporting
Bank.

Reporting Authority with information relating to its capital


adequacy calculated according to the requirements and
guidelines in the format of the reporting schedules.

FRSGlobal has a Risk Measurement Product which basically


provides the required framework for BASEL reporting. This
product will be customized to meet the MAS 637 reporting
requirements.

639 Exposures to Single Counterparty Groups This notice sets out the limits on a bank‟s exposures to a single
counterparty group, the types of exposures to be included in or
excluded from those limits, the basis for computation of
exposures, the approach for aggregating exposures to
counterparties that pose a single risk to the bank, the recognition
of credit risk mitigation and aggregating of exposures at the bank
group level

639A Exposures and Credit Facilities to Related Every bank is expected to maintain detailed records of individual
Concerns exposures to each related person listed in section 27(1) of the
MAS Act. All such exposures to related concerns are required to
be reported in a prescribed form each quarter of the year.

640 Minimum Asset Maintenance Requirements This report sets out the minimum asset maintenance (AM)
requirements for foreign bank branches in Singapore.

MAS 755/1104 Weekly Report on S$ Transactions All banks and merchant banks in Singapore have to report their
weekly spot and outright forward transactions of foreign currency
against the Singapore dollar. Weekly reporting is required, and
each reporting week starts on a Monday. The completed reports
should reach the Authority by 1700 hours on the next working
day immediately after the end of each reporting week.

MAS 757/1105 - Lending of Singapore Dollar to All banks, monthly 10 days after reporting month are required to
Non-Resident Financial Institutions report lending of SGD to Non-Resident Financial Institutions. This
contains the SGD Credit facilities.

ACU/DBU Quarterly Income & Expenditure This MAS report requires the reporting of a ACU or DBU unit of a
commercial bank or merchant bank profit and loss items.

SGS holdings in Custody The report lists the Singapore Government Securities held by a
reporting institution that is acting as custodian. The custodian is
required to list its holdings in custody split over the third parties
for whom it acts as the custodian. These third parties are split
into resident and non-resident parties. The SGS are split into

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bonds and treasury bills, and split into different categories based
upon the remaining term.

758 Minimum Cash Balance Maintenance of Minimum Cash Balance Report

Section29 Credit Facilities & Limits The reports as defined in Section 29 of the Banking Act are
compliance type reports relating to credit facilities & limits
granted to a bank‟s customers. The purpose is to prevent a bank
from lending an unduly large proportion of its deposits to any 1
(or a small groups) of borrowers.

Part 1a Sect29 1a Largest Single or Group of Borrowers - A bank shall not grant or
let it be outstanding to any borrower or group, credit facilities
whose sum exceed 25% of its capital funds.

Part 1b Sect29 1b Substantial Loans - For any substantial loan granted or let it be
outstanding to any borrower or group, the aggregated sum must
not exceed 50% of the bank‟s total facilities. Substantial loan is
one which is > 15% of a bank‟s capital funds

Part 1d Sect29 1d Unsecured Loans to Related Parties - A bank shall not grant
unsecured facilities or have outstandings to its directors either
directly or indirectly exceeding SGD5000.

Section31 Limit on Equity Investment This report caters to Banking Act Section 31 which states no
bank in Singapore shall acquire or hold any equity investment in
a single company, the value of which exceeds in the aggregate
2% of the capital funds of the bank or such other percentage as
the Authority may prescribe with certain exceptions as specified
in the Section.

Section35 Immovable Property This report caters to Banking Act Section 35:

The total financial exposure to property of a bank in Singapore


shall not exceed 35% of the total eligible assets of that bank
unless the Authority approves any other percentage in the
circumstances of a particular case.

The aim of this report is to monitor the exposure of the reporting


institution versus property, whether direct or indirect. The
background of the monitoring is the risk of a banking crisis due to
a collapse of the property market. One has only to look at Japan
or the Loans & Savings in the US in the 80‟s to understand how
serious this monitoring should be taken. Unlike any other private
sector the banking sector is too vital for the economic support of
the economy to be left to the laws of the open market. The
Singapore government has decided to limit the exposure to a
maximum of 35% of the eligible assets.

ACU - Guidelines of Operations of ACU From the Asian Currency Unit Terms & Conditions of Operation:

Para3 – The Unit's total assets/liabilities shall not exceed the limit
fixed by The Monetary Authority of Singapore from time to time

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for your Unit. This limit includes all contingent items.

Para4-13 – These paragraphs describe the businesses that may


be conducted by a ACU, with the explicit instruction that such
businesses „does not involve Singapore Dollars‟.

ACU Book Sz – report for compliance to Para3 Prohibited SGD Transactions in ACU

ACU SGD Txn – report for compliance to Para4- ACU Book Size Restrictions
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ACU/DBU Top100 Borrowers All banks, merchant banks, and finance companies in Singapore
have to report twice per year the groups to which the 100 biggest
borrowers belong. In addition to the outstanding balances also
facility size, shareholders, and other details have to be reported.

Top100 Borrowers – Summary List Report necessary to determine the Top 100 customer groups to
be reported

Top100 Borrowers For 1st to 150th Customer on One report is generated per customer listed as a Top100
List customer groups

Consolidated banking Statistics All banks in Singapore are required to submit to The Monetary
Authority of Singapore (MAS) the „BIS Consolidated Banking
Statistics‟ (referred to as CBS). There is a different requirement
for different types of banks. The consolidated banking statistics
report covers two areas:

report outstanding on ultimate risk basis for assessing country


credit risk exposure

report outstanding on original risk basis (immediate borrower )


which provide a measure of the degree of the risk transfers

BIS_FB.bk - Consolidated international banking Only required for locally incorporated banks
statistics (immediate borrower basis) - Domestic
banks

BIS_UB.bk - Consolidated international banking Only required for locally incorporated banks
statistics (ultimate risk basis) - Domestic banks

BIS_RECON.bk - Overview of ISDA Netting Supporting report for ISDA netting

BIS_FC.bk - Consolidated international banking Only required for banks incorporated in one of 30 countries
statistics (immediate borrower basis) (known as the 'inside area')

BIS_FD.bk - Consolidated international banking Only required for banks not incorporated in one of 30 countries
statistics (immediate borrower basis) - Outside (known as the 'outside area')
area foreign offices

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Copyright © 2009 FRS Belgium NV ("FRSGlobal"). All rights reserved. All other registered or unregistered trademarks and
service marks are property of their respective companies and should be treated as such. No part of this publication may be
reproduced, transcribed, transmitted, stored in a retrieval system, computer or otherwise, in any form or by any means, magnetic,
mechanical, electronic, optical, manual or otherwise, and may not be translated into any language without the express written
permission of FRSGlobal.

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FRSGlobal is the only supplier of regulatory risk and compliance reporting, regulators‟ requirements. The Guarantee is facilitated by the FRSGlobal
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with coverage for 40+ countries. We provide over 1500 financial Centre of Risk and Regulatory Excellence ( CoR E) which monitors the
organisations – including 41 of the top 50 banking institutions – with changes that affect reporting requirements in more than 100 countries
enterprise risk and regulatory compliance reporting solutions that enable
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