MAS: Covered bond structure a commercial decision

Singapore

THE covered bond structure - including a proposed alternative ring-fencing declaration of trust (DoT) structure - to be adopted in the issue of covered bonds is a commercial decision by the issuing bank.

The Monetary Authority of Singapore (MAS) said this on Thursday as part of its official response to feedback on its proposed amendments to Notice 648 on covered bonds issuance. The amendments - detailed in a January consultation paper - are aimed at refininig the regulatory framework to give further operational flexibility to banks seeking to issue covered bonds in Singapore.