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Contents

Long Title

Part I PRELIMINARY

Part II APPOINTMENT OF ASSISTANTS

Part III LICENSING OF BANKS

Part IV RESERVE FUNDS, DIVIDENDS, BALANCE-SHEETS AND INFORMATION

Part V PROHIBITED BUSINESS

Part VI MINIMUM ASSET REQUIREMENTS

Part VII POWERS OF CONTROL OVER BANKS

Part VIIA VOLUNTARY TRANSFER OF BUSINESS

Division 1 — Voluntary transfer of business of bank

Division 2 — Repealed

Division 3 — Repealed

Division 4 — Repealed

Division 5 — Miscellaneous

Part VIII CREDIT CARD AND CHARGE CARD BUSINESSES

Part IX MISCELLANEOUS

FIRST SCHEDULE Banks

SECOND SCHEDULE Effect of Merger

THIRD SCHEDULE Disclosure of Information

FOURTH SCHEDULE Specified Provisions

FIFTH SCHEDULE Definitions in Sections 27, 28, 29 and 38

Legislative History

Comparative Table

Comparative Table

 
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On 25/04/2014, you requested the version in force on 25/04/2014 incorporating all amendments published on or before 25/04/2014. The closest version currently available is that of 02/01/2014.
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PART IV
RESERVE FUNDS, DIVIDENDS, BALANCE-SHEETS AND INFORMATION
Maintenance of reserve fund
22.  [Repealed by Act 1 of 2007]
Maintenance of adequate provision for bad and doubtful debts
23.  Every bank in Singapore shall make provision for bad and doubtful debts and before any profit or loss is declared ensure that that provision is adequate.
[23/2001]
Dividends
24.  [Repealed by Act 23 of 2001]
Publication and exhibition of audited balance-sheet
25.
—(1)  Every bank shall exhibit in a conspicuous position in each of its offices and branches in Singapore —
(a)
a copy of its latest audited annual balance-sheet and profit and loss account, together with any notes thereon, and a copy of the report of the auditors, except that in the case of a bank incorporated outside Singapore, those statements may be made in a manner that complies with the law for the time being applicable in the place of its incorporation or origin;
(b)
the full and correct names of all persons who are directors for the time being of the bank; and
(c)
the names of all subsidiary companies for the time being of the bank.
[28/93]
(2)  Every bank shall, within 5 months after the close of each financial year or within such period as the Authority may approve, publish in such newspaper or newspapers as may be prescribed by regulations a copy of its latest audited annual balance-sheet and profit and loss account containing at least such information as the Authority may require by notice in writing.
[23/2001]
(3)  In the case of a bank incorporated outside Singapore, the statements referred to in subsection (2) may be made in a manner that complies with the law for the time being applicable in the place of its incorporation or origin.
[28/93]
(4)  The Authority may, by notice in writing, require a bank to publish in addition to its balance-sheet and profit and loss account under subsection (2) such additional information relating to the accounts of that bank for any financial year as the Authority thinks fit.
[28/93]
(5)  Any bank which fails to comply with this section shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $25,000 and, in the case of a continuing offence, to a further fine of $2,500 for every day during which the offence continues after conviction.
[2/84; 23/2001]
Information to be furnished by banks
26.
—(1)  Every bank shall furnish to the Authority such information (including returns) at such time and in such manner as the Authority may reasonably require for the proper discharge of its functions.
[23/2001]
*(2)  Every bank shall send to the Authority —
(a)
not later than 3 months after the close of its financial year or within such longer period as the Authority may on application of the bank approve —
(i)
a copy of its latest audited annual balance-sheet and profit and loss account together with any notes thereon;
(ii)
a copy of the report of the auditors of the bank;
(iii)
a copy of the report of the directors of the bank;
(iv)
a duly audited balance-sheet showing its assets used in, and liabilities arising out of, its operation in Singapore as at the date to which its balance-sheet was made up; and
(v)
a duly audited profit and loss account which gives a true and fair view of the profit or loss arising out of the bank’s operation in Singapore for its last preceding financial year;
(b)
in the case of a bank incorporated in Singapore, within such period as the Authority may require, its interim profit and loss account for every half-year or such other intervals as may be determined by the Authority; and
(c)
within such period and in such manner as the Authority may require, such further or additional information as the Authority may consider necessary either by way of explanation, amplification or otherwise with regard to any of the balance-sheets and profit and loss accounts sent under paragraph (a) or (b).
[23/2001]
*  The former subsections (2) and (3) of section 26 are omitted from the 2003 Ed., being obsolete by virtue of MAS Notice 610 to Banks issued by the Authority under section 26(1).
*(3)  In the case of a bank incorporated outside Singapore, the statements referred to in subsection (2)(a)(i), (ii) and (iii) may be made in a manner that complies with the law for the time being applicable in the place of its incorporation, formation or establishment.
[23/2001]
*  The former subsections (2) and (3) of section 26 are omitted from the 2003 Ed., being obsolete by virtue of MAS Notice 610 to Banks issued by the Authority under section 26(1).
(4)  The Authority may, in its discretion, regard the balance-sheet and profit and loss account as having been duly audited for the purpose of subsection (2)(a)(iv) and (v) if the balance-sheet and profit and loss account are accompanied by a report by a public accountant within the meaning of the Companies Act (Cap. 50) which complies, insofar as it is practicable, with section 207 of that Act.
[23/2001; 5/2004]
(5)  The Authority may require any statement submitted to it under subsection (1) to be accompanied by a certificate —
(a)
of the auditor appointed by the bank under section 58(1); or
(b)
of any other auditor appointed by the Authority under section 58(3),
as to whether in the opinion of the auditor, the statement or information is correct.
(6)  Any information received from a bank under this section shall be treated as secret by the Authority.
[23/2001]
(6A)  Nothing in subsection (6) shall preclude the Authority from disclosing any information, not being customer information as defined in section 40A, received from a bank under this section if —
(a)
the information is in the public domain;
(b)
the information is disclosed in such a manner that the bank’s identity cannot be ascertained;
(c)
the bank or the person from whom the bank has obtained the information consents to the disclosure;
(d)
the person to whom the information relates consents to the disclosure; or
(e)
the disclosure of the information is necessary for the performance of any principal object or function, or the exercise of any power, of the Authority under this Act or any other written law.
[1/2007]
(7)  Nothing in this section shall prevent the Authority from preparing and publishing consolidated statements aggregating such information as may be furnished under this section.
[28/93]
(8)  Any bank which fails or neglects to furnish any information required by the Authority under this section shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $100,000 and, in the case of a continuing offence, to a further fine of $10,000 for every day during which the offence continues after conviction.
[2/84; 28/93; 23/2001]
Action to be taken if credit facilities or exposures are against interests of depositors
27.
—(1)  Every bank in Singapore shall prepare a statement in respect of each quarter of a year, in such form as may be specified by the Authority, showing as at the end of that quarter all the credit facilities from and all the exposures of the bank to —
(a)
any person in a director group of the bank;
(b)
any firm or limited liability partnership of which the bank is a partner, a manager, an agent, a guarantor or a surety;
(c)
any company of which any of the directors of the bank is a director or an agent;
(d)
any company of which the bank or any of its officers (other than directors), employees or other persons who receive remuneration from the bank (other than for professional services rendered to the bank) is a director, an executive officer, an agent, a guarantor or a surety;
(e)
any of its officers (other than directors), employees or other persons who receive remuneration from the bank (other than for professional services rendered to the bank) in excess of one year’s emoluments of the officer, employee or person;
(f)
in the case of a bank incorporated in Singapore, any person in a substantial shareholder group of the bank;
(g)
any person in the financial group of the bank;
(h)
any related corporation of the bank;
(i)
any individual in whom, or any firm, limited liability partnership or company in which, any of the directors of the bank has an interest, directly or indirectly, as declared under section 28 other than the credit facilities or exposures particulars of which have already been supplied under this subsection; and
(j)
such other person or class of persons as may be prescribed.
[1/2007]
(2)  A statement under subsection (1) —
(a)
shall be prepared within 7 days, or such other period as may be approved by the Authority, after the quarter of the year in respect of which it is to be prepared;
(b)
shall —
(i)
in the case of a bank incorporated in Singapore, be brought up and read at the next meeting of its board of directors after it is prepared; and
(ii)
in the case of a bank incorporated outside Singapore, be submitted to the head office of the bank; and
(c)
shall be submitted to the Authority within 7 days from the date on which it is read at the meeting of the board of directors or submitted to the head office of the bank, as the case may be.
[1/2007]
(3)  If, on examination of any statement supplied by a bank under subsection (2)(c), it appears to the Authority that any credit facility from or any exposure of the bank to any person is to the detriment of the interests of the depositors of the bank, the Authority may by notice in writing to the bank do one or more of the following:
(a)
direct the bank to secure repayment of the credit facility or reduce the exposure within such time and to such extent as may be specified in the notice;
(b)
prohibit the bank from granting any further credit facility to the person or impose such restrictions on the grant thereof as the Authority thinks fit;
(c)
direct the bank to cease any further exposure to the person or impose such restrictions on such further exposure as the Authority thinks fit.
[1/2007]
(4)  In this section —
“director”, in relation to a bank in Singapore, has the meaning given to it in the Fifth Schedule;
“director group” has the meaning given to it in the Fifth Schedule;
“exposure” has the meaning given to it in the Fifth Schedule;
“financial group” has the meaning given to it in the Fifth Schedule;
“substantial shareholder group” has the meaning given to it in the Fifth Schedule.
[1/2007]
Disclosure of interest by directors
28.
—(1)  Every director of a bank in Singapore who has in any manner, directly or indirectly, an interest in a credit facility from or an exposure of, or a proposed credit facility from or exposure of, that bank shall as soon as practicable declare the nature of his interest to the board of directors of that bank and the secretary of that bank shall cause the declaration to be circulated immediately to all the directors.
[23/2001; 1/2007]
(2)  The requirements of subsection (1) shall not apply in any case where the interest of the director consists only of being a member or creditor of a company which is interested in a credit facility from or an exposure of, or a proposed credit facility from or exposure of, that bank if the interest of the director may properly be regarded as of a trivial nature.
[1/2007]
(3)  For the purposes of subsection (1), a general notice given to the board of directors of a bank by a director to the effect that he is an officer or a member of a specified company, or a partner or manager of a specified firm or specified limited liability partnership, and that he is to be regarded as having an interest in any credit facility or exposure which may, after the date of the notice, be granted to or acquired in respect of that company, firm or limited liability partnership, shall be deemed to be a sufficient declaration of interest in relation to any credit facility so granted or any exposure so acquired if —
(a)
it specifies the nature and extent of his interest in that company, firm or limited liability partnership;
(b)
his interest is not different in nature from or greater in extent than the nature and extent so specified in the notice at the time any credit facility is granted or any exposure is acquired; and
(c)
it is given at a meeting of the board of directors or the director takes reasonable steps to ensure that it is brought up and read at the next meeting of the board of directors after it is given.
[1/2007]
(4)  Every director of a bank in Singapore who holds any office or possesses any property whereby, directly or indirectly, duties or interest might be created in conflict with his duties or interest as director shall declare at a meeting of the directors of that bank the fact and the nature, character and extent of the conflict.
[23/2001]
(5)  The declaration referred to in subsection (4) shall be made at the first meeting of the directors held —
(a)
after he becomes a director of the bank; or
(b)
if already a director, after he commences to hold the office or to possess the property, as the case may be.
(6)  The secretary of that bank shall —
(a)
cause to be brought up and read any declaration made under subsection (1) or (4) at the next meeting of the directors after it is given; and
(b)
record any declaration made under this section in the minutes of the meeting at which it was made or at which it was brought up and read.
(7)  Any director who acts in contravention of subsection (1) or (4) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $125,000 or to imprisonment for a term not exceeding 3 years or to both.
[2/84; 23/2001]
(8)  In this section, “exposure” has the meaning given to it in the Fifth Schedule.
[1/2007]