PART I | 1. These Regulations may be cited as the Banking Regulations. |
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); [S 170/2006 wef 24/03/2006] |
| [Deleted by S 511/2019 wef 01/08/2019] |
| “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; |
| [Deleted by S 473/2021 wef 01/07/2021] |
| [Deleted by S 473/2021 wef 01/07/2021] |
| [Deleted by S 473/2021 wef 01/07/2021] |
| “fund management” has the same meaning as in Part II of the Second Schedule to the Securities and Futures Act (Cap. 289); [S 170/2006 wef 24/03/2006] |
| [Deleted by S 473/2021 wef 01/07/2021] |
| “group”, in relation to a corporation, means a group within the meaning of the Accounting Standards, of which the corporation is a part; [S 170/2006 wef 24/03/2006] |
| “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 37 of the Deposit Insurance and Policy Owners’ Protection Schemes Act (Cap. 77B); [S 473/2021 wef 01/07/2021] |
| “market day”, in relation to a share traded on a securities exchange, means any day which the securities exchange is open for trading; [S 473/2021 wef 01/07/2021] |
| [Deleted by S 511/2019 wef 01/08/2019] |
| “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, hostel, serviced apartment, boarding house, lodging house or dormitory; or [S 511/2019 wef 01/08/2019] | | (iii) | for community, charity or educational purposes; |
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“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, hostel, serviced apartment, boarding house, lodging house or dormitory; or [S 511/2019 wef 01/08/2019] | | (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 any member of his family or as premises for any business carried on by him; [S 511/2019 wef 01/08/2019] | | (ii) | used or to be used for the business of a hotel, hostel, serviced apartment, boarding house, lodging house or dormitory; or [S 511/2019 wef 01/08/2019] | | (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); |
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“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; |
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| “Singapore Government Securities” means securities issued by the Government under any written law; |
| [Deleted by S 511/2019 wef 01/08/2019] |
“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. |
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