MAYBANK Singapore on Thursday said it has had ongoing consultations with the Monetary Authority of Singapore (MAS) on the incorporation of its operations in Singapore, and "reaffirm our commitment to this".
It did not offer a date for the incorporation of its retail business here, and remains the only one of seven domestic systemically important banks (D-SIB) in Singapore that have not incorporate the business, or confirmed a timeline for this.
A framework unveiled by the MAS in May 2015 listed seven banks - DBS, OCBC, UOB, Citibank, Standard Chartered, Maybank and HSBC - as lenders that are effectively deemed "too big to fail" in Singapore, mainly because of their significant retail presence here. These banks will face additional supervisory measures, and this includes locally incorporating their retail operations.
This means the local deposits are ringfenced from the group's operations, and it provides protection against a potential loss of Singapore-based consumers' money when the overall group runs into trouble.
HSBC has announced that it expects to incorporate its retail operations this year. All but Maybank and HSBC have ringfenced their retail business here.
"Maybank sees Singapore as a key market, and an important gateway to the rest of the region. The local incorporation signifies a further deepening of Maybank's roots in Singapore, cementing its unwavering commitment to the local community after 55 years in the country," Maybank Singapore said.
"Singapore is an important part of the bank's strategy to continue growing its international business and we look forward to forging even closer ties with our customers in Singapore and the region."
Relating to banks that have to locally incorporate their retail operations, MAS has said that "where appropriate, MAS will provide such D-SIBs with an adequate transition period to comply with this requirement".