Banking Regulations - Singapore Statutes Online

Prescribed private equity or venture capital business

23F.—(1) For the purposes of section 30(1)(d) of the Act and subject to paragraphs (3) and (4), a business (not being a business referred to in section 30(1)(a), (b) or (c) of the Act) which —

(a)	is carried on by a company or the trustee of a trust; and
(b)	satisfies the requirement in paragraph (2),

is prescribed as a business that any bank in Singapore may carry on, or with whom a bank in Singapore may enter into any partnership, joint venture or any other arrangement to carry on, whether in Singapore or elsewhere.

(2) The business referred to in paragraph (1) is one which the bank in Singapore has determined to have potential for high growth or value creation.

(3) The reference to a company or trustee of a trust in paragraph (1) excludes a company or trustee which —

(a)	is not carrying on any substantial business or not in operation;
(b)	is carrying on the business of engaging in property-related activities; or
(c)	is carrying on the business of factoring, leasing equipment or otherwise purchasing debt obligations from others.

(4) The bank in Singapore shall, when carrying on a business prescribed in paragraph (1), limit its total net book value of all such businesses —

(a)

where the bank is incorporated in Singapore, to —

(i)	10% of its capital funds or such other percentage as the Authority may approve in any particular case; and
(ii)	10% of the capital funds of its bank group or such other percentage as the Authority may approve in any particular case (where applicable); and [S 473/2021 wef 01/07/2021]

(b)

where the bank consists of the branches and offices located within Singapore of a bank incorporated outside Singapore, to 1.5% of the assets that are reflected as assets in the balance sheet of those branches and offices (less net inter-bank lending) or such other percentage as the Authority may approve in any particular case.

[S 473/2021 wef 01/07/2021]

(5) [Deleted by S 473/2021 wef 01/07/2021]

(6) In this regulation, unless the context otherwise requires —

[Deleted by S 473/2021 wef 01/07/2021]

“capital funds” —

(a)	in relation to a bank incorporated in Singapore, means the capital of the bank that is used for the purposes of calculating the bank’s capital adequacy requirements under section 10 of the Act; or
(b)	in relation to the bank group of a bank incorporated in Singapore, means the capital of the bank group that is used for the purposes of calculating the bank group’s capital adequacy requirements under section 10 of the Act;
(c)	[Deleted by S 473/2021 wef 01/07/2021]

[S 473/2021 wef 01/07/2021]

“net inter-bank lending”, in relation to the branches and offices located within Singapore of a bank incorporated outside Singapore, means the total lending by those branches and offices to —

(a)	other branches and offices located outside Singapore of the bank incorporated outside Singapore; and
(b)	other banks and merchant banks,

less the total borrowing by those branches and offices from —

(c)	other branches and offices of the bank located outside Singapore; and
(d)	other banks and merchant banks.

[S 473/2021 wef 01/07/2021]

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