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Contents

Part I PRELIMINARY

Part II CONTROL OF DEPOSIT-TAKING ACTIVITIES

Part IIA MINIMUM CAPITAL REQUIREMENTS

Part IIB EXCLUSION OF LIMITS ON EQUITY INVESTMENTS

Part III EXCLUSION OF CERTAIN INVESTMENTS AND WHOLLY-OWNED SUBSIDIARIES

Part IV PROPERTY SECTOR EXPOSURE

Part V APPLICATION OF SECRECY PROVISIONS TO MERCHANT BANKS

Part VI EXCLUSION OF NON-BENEFICIAL INTERESTS IN OR RIGHTS OVER IMMOVABLE PROPERTY

Part VII COMPUTATION OF MAJOR STAKES

Part VIII LIMITATION OF MUTUAL SHAREHOLDINGS

Part IX PRESCRIBED BUSINESSES

Part X EXPOSURES AND CREDIT FACILITIES

Part XI TRANSFER OF BUSINESS AND SHARES AND RESTRUCTURING OF BANK

Part XII DEPOSIT LIABILITIES OF BANK

Part XIII compoundable offences

FIRST SCHEDULE Quarterly Reporting For Section 35, Banking Act

SECOND SCHEDULE Secrecy Provisions Applicable to Merchant Banks

THIRD SCHEDULE Exceptions to Secrecy Obligation of Merchant Banks

FOURTH SCHEDULE Requirements for Reports to be Submitted to Authority

Legislative History

 
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On 26/11/2014, you requested the version in force on 26/11/2014 incorporating all amendments published on or before 26/11/2014. The closest version currently available is that of 02/01/2014.
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Banking Act
(Chapter 19, SECTIONS 4A, 4B, 30(1)(d), 32(5), 33(2)(d), 35(1) and (2)(e), 47(10) and 78(1) and (3))
Banking Regulations
Rg 5
G.N. No. S 347/2001
REVISED EDITION 2004
(30th September 2004)
[18th July 2001]
PART I
PRELIMINARY
Citation
1.  These Regulations may be cited as the Banking Regulations.
Definitions
2.  In these Regulations, unless the context otherwise requires —
“Accounting Standards” has the same meaning as in section 4(1) of the Companies Act (Cap. 50);
“accredited investor” means —
(a)
an individual, a trustee or a person within the meaning of section 4A(1)(a)(i), (iii) or (iv), respectively, of the Securities and Futures Act (Cap. 289);
(b)
a corporation with net assets or net group assets exceeding $10 million in value (or its equivalent in a foreign currency) or such other amount as the Authority may prescribe under section 4A(1)(a)(ii) of the Securities and Futures Act in place of the first amount, as determined by —
(i)
the most recent audited balance-sheet of the corporation (whether on an individual or on a group basis); or
(ii)
where the corporation is not required to prepare audited accounts regularly under the Companies Act (Cap. 50), a balance-sheet of the corporation (whether on an individual or on a group basis) certified by the corporation as giving a true and fair view of the state of affairs of the corporation and its group (where applicable) as of the date of the balance-sheet, which date shall be within the preceding 12 months; or
(c)
a corporation which acts as a trustee for the customers of a person carrying on the business of fund management with total assets under management exceeding $10 million in value (or its equivalent in a foreign currency);
“credit derivative” means any swap, option or other financial derivative the purpose of which is to secure a profit or avoid a loss by reference to the performance by a third party of certain specified obligations or to the change in creditworthiness of the third party;
“customer”, in relation to a merchant bank, includes the Authority or any monetary authority or central bank of any other country or territory, but does not include any company which carries on merchant banking business, investment banking business or banking business, or such other financial institution as may be designated by the Authority by notice in writing;
“customer information”, in relation to a merchant bank, means —
(a)
any information relating to, or any particulars of, an account of a customer of the merchant bank, whether the account is in respect of a loan, investment or any other type of transaction, but does not include any information that is not referable to any named customer or group of named customers; or
(b)
deposit information;
“deposit information”, in relation to a merchant bank, means any information relating to —
(a)
any deposit of a customer of the merchant bank;
(b)
funds of a customer under management by the merchant bank; or
(c)
any safe deposit box maintained by, or any safe custody arrangements made by, a customer with the merchant bank,
but does not include any information that is not referable to any named person or group of named persons;
“fund management” has the same meaning as in Part II of the Second Schedule to the Securities and Futures Act (Cap. 289);
“funds of a customer under management” means any funds or assets of a customer (whether of the merchant bank or any financial institution) placed with that merchant bank for the purpose of management or investment;
“group”, in relation to a corporation, means a group within the meaning of the Accounting Standards, of which the corporation is a part;
“liabilities”, in relation to the policies of an insurance fund maintained by an insurer, means such liabilities and expenses of the insurer as are attributable to the business to which the insurance fund relates, but excludes any levy payable by that insurer under section 46 of the Insurance Act (Cap. 142);
“market day”, in relation to a share traded on a securities exchange, means any day which the securities exchange is open for trading of shares;
“merchant bank” means a merchant bank approved as a financial institution under section 28 of the Monetary Authority of Singapore Act (Cap. 186);
“NCD” means negotiable certificate of deposit;
“overseas bank” means a company incorporated, formed or established outside Singapore which carries on banking business only outside Singapore and is not licensed under the Act;
“place of booking”, in relation to a bond or an NCD issue, means the jurisdiction in which the branch or office of the issuer which is issuing the bond or NCD, as the case may be, is located;
“prohibited business” has the same meaning as in section 32(7) of the Act;
“property corporation” means any body corporate where —
(a)
more than 50% of the total turnover of the body corporate is derived from property-related activities; or
(b)
more than 50% of the total assets of the body corporate comprises interests in or rights over immovable property situate in Singapore, other than such immovable property or any part thereof which is used —
(i)
as premises for the conduct of any business carried on by the body corporate;
(ii)
for the business of a hotel or hostel; or
(iii)
for community, charity or educational purposes;
“property-related activities” means —
(a)
the construction of or the causing of the construction of any building on, over or under land in Singapore for the purpose of sale by the person carrying out or causing such construction, of any right or interest in the land which would be appurtenant to such building, other than a building or part thereof constructed for use —
(i)
for the business of a hotel or hostel; or
(ii)
for community, charity or educational purposes;
(b)
the acquisition or holding of any interest in or right over immovable property situate in Singapore for the purposes of rental, or for the purposes of securing a profit from its sale, other than such immovable property or part thereof —
(i)
used or to be used by the person acquiring or holding the immovable property for occupation by himself or members of his family or as premises for any business carried on by him;
(ii)
used or to be used for the business of a hotel or hostel; or
(iii)
used or to be used for community, charity or educational purposes;
(c)
the financing of any activity referred to in paragraph (a) or (b);
(d)
the making of loans to any property corporation;
(e)
the acquisition or holding as beneficial owner of shares or debentures issued by any property corporation; and
(f)
the acquisition or holding as beneficial owner of debentures the payment of principal or interest on which is contingent, directly or indirectly, on the turnover, profits or cashflow from any activity under paragraph (a), (b), (c), (d) or (e);
“property sector exposure”, in relation to a bank in Singapore, means the aggregate of —
(a)
amounts outstanding to the bank under credit facilities granted to any property corporation or to any related corporation of a property corporation for use by the property corporation;
(b)
amounts outstanding to the bank under credit facilities granted to any person other than a property corporation —
(i)
in the case where such person is a corporation, for the purpose of financing or facilitating the property-related activities of that person or its related corporations; and
(ii)
in any other case, for the purpose of financing or facilitating the property-related activities of that person;
(c)
amounts of debentures beneficially held by the bank and issued by any property corporation;
(d)
amounts of debentures beneficially held by the bank and issued by any person other than a property corporation, where the payment of principal or interest is contingent, whether in whole or in part, on the turnover, profits or cashflow from any property-related activity;
(e)
amounts paid by the bank for securities transferred to it pursuant to a repurchase transaction between the bank and a property corporation, on terms that require the future transfer of equivalent securities by the bank to the property corporation;
(f)
amounts of contingent liabilities incurred by the bank —
(i)
in respect of any obligation of a property corporation; or
(ii)
in respect of any obligation of any other person, where such obligation is undertaken in connection with property-related activities;
(g)
where the bank has entered into any agreement (including a credit derivative agreement) with any other party under which the other party would secure a benefit or avoid a loss where there is —
(i)
a failure by a property corporation to perform its obligations;
(ii)
a decline in the creditworthiness of a property corporation; or
(iii)
a failure by any person other than a property corporation to perform its obligations where such obligations are undertaken in connection with property-related activities,
the highest amount of such benefit or loss as may be secured or avoided, as the case may be, except to the extent that such amount constitutes part of any amounts under paragraph (f); and
(h)
amounts payable to the bank by any property corporation under a bill of exchange or promissory note,
but does not include any amounts in respect of —
(A)
credit facilities granted to the Government or to any statutory board;
(B)
Singapore Government Securities or bonds issued by any statutory board;
(C)
debentures held pursuant to an agreement entered into by the bank for the underwriting of an issue of such debentures, for a period not exceeding 8 weeks from the date of the launch of the issue;
(D)
loans, debentures or other assets forming the subject matter of a securitisation transaction where the criteria determined by the Authority for effecting a clean sale of assets by the bank have been complied with; or
(E)
any instrument or transaction described in paragraphs (a) to (h) to the extent that the bank would be indemnified or otherwise protected from losses that may be incurred by it under that instrument or transaction pursuant to a guarantee issued by any other bank or any credit derivative entered into by the bank with any person other than a property corporation;
“Singapore Government Securities” means securities issued by the Government under any written law;
“subsidiary” has the same meaning as in section 5 of the Companies Act (Cap. 50);
“total eligible assets”, in relation to a bank in Singapore, means the aggregate of —
(a)
amounts outstanding to the bank under credit facilities granted to any person other than a bank or an overseas bank;
(b)
amounts of debentures beneficially held by the bank and issued by any other person who is not a bank or an overseas bank;
(c)
amounts paid by the bank for securities transferred to it pursuant to a repurchase transaction between the bank and any other party who is not a bank or an overseas bank, on terms that require the future transfer of equivalent securities by the bank to the other party;
(d)
amounts of contingent liabilities incurred by the bank —
(i)
in respect of any obligation of a property corporation; or
(ii)
in respect of any obligation of any other person, where such obligation is undertaken in connection with property-related activities;
(e)
where the bank has entered into any agreement (including a credit derivative agreement) with any other party under which the other party would secure a benefit or avoid a loss where there is —
(i)
a failure by a property corporation to perform its obligations;
(ii)
a decline in the creditworthiness of a property corporation; or
(iii)
a failure by any person other than a property corporation to perform its obligations where such obligations are undertaken in connection with property-related activities,
the highest amount of such benefit or loss as may be secured or avoided, as the case may be, except to the extent that such amount constitutes part of any amounts under paragraph (d); and
(f)
amounts payable to the bank by any person, other than a bank or an overseas bank, under a bill of exchange or promissory note,
but does not include any amounts in respect of —
(A)
in the case of a bank incorporated in Singapore, any instrument or transaction described in paragraphs (a) to (f) not forming part of the bank’s business in Singapore, except to the extent that such instrument or transaction forms part of the property sector exposure of the bank; or
(B)
in the case of a bank incorporated outside Singapore, any instrument or transaction described in paragraphs (a) to (f) not forming part of the bank’s business in Singapore.