8. The Banking Act is amended by inserting, immediately after section 10, the following sections:“Leverage ratio requirement |
10A.—(1) The Authority may, by notice in writing, require any bank incorporated in Singapore or any class of banks incorporated in Singapore, to maintain a minimum leverage ratio of a specified percentage, and to carry out other acts relating to this.(2) Without limiting the generality of subsection (1), a notice under that subsection may prescribe the manner of and process for calculating the leverage ratio. |
(3) Where the Authority issues a notice under subsection (1) to a class of banks incorporated in Singapore, the Authority may by another notice —(a) | impose additional leverage ratio on the class of banks; |
(b) | impose restrictions on distributions by a bank of dividends, bonuses, commissions, payments as a result of a buyback of shares, and any other payment, in the event that the bank fails to comply with a requirement imposed under subsection (1); or |
(c) | vary the requirements for different banks within that class having regard to the risks arising from the activities of each bank, the financial soundness of each bank, and such other factors as the Authority may consider relevant. |
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(4) Any bank which fails to comply with a notice under subsection (1) or (3) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $250,000 and, in the case of a continuing offence, to a further fine not exceeding $25,000 for every day or part of a day during which the offence continues after conviction. |
(5) In this section and section 10B, “leverage ratio” means the ratio of the capital to the exposures of the bank. |
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Public disclosure requirement |
10B.—(1) For the purposes of enhancing market discipline, the Authority may, by notice in writing to a bank in Singapore or a class of banks in Singapore, require —(a) | the bank or each bank in the class to disclose to the public, in the form and manner specified by the Authority, any information relating to its operations and activities, and the manner it complies with any provision of this Act or a notice or direction issued under this Act; or |
(b) | the bank or each bank in the class, if incorporated in Singapore, to disclose to the public, in the form and manner specified by the Authority, any information relating to the operations and activities of any entity in its bank group within the meaning of section 48AA. |
(2) Without limiting the generality of subsection (1), a notice under that subsection may require a bank to disclose one or more of the following information of the bank or an entity in the bank group of the bank (as the case may be):(a) | its risk profile and risk management process; |
(b) | aspects of its corporate governance; |
(c) | its capital adequacy, including various components used to calculate its capital adequacy; |
(e) | the manner it complies with any requirement imposed on it under section 38 (if applicable); |
(f) | the aggregation of —(i) | its assets, liabilities, profits or losses, and any other information whether or not on its balance‑sheet; and | (ii) | the assets, liabilities, profits or losses, and any other information whether or not on the balance‑sheet or balance‑sheets, of all or any of its related corporations, and the entities in which it holds, directly or indirectly, a major stake as defined in section 32(7). |
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(3) Any bank which fails to comply with a notice under subsection (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $250,000 and, in the case of a continuing offence, to a further fine not exceeding $25,000 for every day or part of a day during which the offence continues after conviction. |
(4) Any bank which, in purported compliance with a notice under subsection (1), provides to the public any information, knowing or reckless that the information is false or misleading in a material particular, shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $250,000. |
(5) Where a bank is guilty of an offence under subsection (3) or (4), any individual charged with the duty of securing the bank’s compliance with the notice and was in the position to discharge that duty, shall also be guilty of an offence and shall be liable on conviction —(a) | if the individual committed the offence wilfully, to a fine not exceeding $125,000 or to imprisonment for a term not exceeding 3 years or to both; or |
(b) | if the individual did not commit the offence wilfully, to a fine not exceeding $125,000.”. |
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