Singapore banks to be allowed to invest in digital consumer platforms
THE Monetary Authority of Singapore (MAS) will streamline regulatory requirements for banks seeking to conduct or invest in digital platforms that would match buyer and sellers, as well as that engage in the online sale of consumer goods and services, said Minister for Finance Heng Swee Keat in a speech on Tuesday.
These have been determined as "permissible non-financial businesses" that are related or that complement the banks' core financial businesses. The investment in such related businesses will be limited to 10 per cent of a bank's capital funds.
"Banks are currently prohibited from selling consumer goods. But non-bank digital players are now offering a seamless transactional experience in the sale as well as payment of consumer goods," said Mr Heng.
In simplifying the requirements, the MAS says banks will not need to seek prior regulatory approval before conducting or acquiring major equity stakes in these "permissible non-financial businesses". The MAS will also remove detailed requirements such as conducting regular stress tests or external audits.
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Banking & Finance
Nomura, Mizuho face losses on All Blue fund’s failed trades
Stablecoin Tether steps up monitoring in bid to combat illicit finance
HSBC asked by US$890 billion investor group to set energy goal
Barclays is the latest firm to face anti-ESG wrath in Oklahoma
Barclays prices mortgage-backed notes in deal with GoldenTree
TD risks an earnings hit from US laundering probe, analysts say