The Monetary Authority of Singapore will streamline the regulatory requirements for banks seeking to conduct or invest in permissible non-financial businesses.
Singapore's financial regulator has proposed rules that will make it easier for banks to conduct or invest in non-financial businesses such as e-commerce and digital-payment platforms,
The move, according to the country's Finance Minister Heng Swee Keat, is to support the lenders better compete with non-bank firms in these areas.
Related Activities
Under the Monetary Authority of Singapore (MAS) proposals, lenders will no longer need regulatory approval to invest in such businesses.
MAS will allow banks to engage in the operation of digital platforms that match buyers and sellers of consumer goods or services as well as the online sale of such goods or services, if such activities are related or complementary to their core financial businesses.
Investment Parameters Set For Now
The MAS states it will cap the investment to 10 percent of the bank’s capital funds. «Banks are facing increasing competition from online and non-financial players that have leveraged their large user base to provide digital wallets, payments and remittance services,» said Heng.
