Unit 2_Types of Banking Licences in Singapore Flashcards
Jiayou! This is cui.
Types of Banking Licenses in Singapore.
[Banks are licensed under the Banking Act]
There are four types of banking licences. They are:
(A) Full Licence Banks
(B) Wholesale Licence Banks
(C) Offshore Banks
(D) Qualifying Full Bank Licence (QFB)
Types of Banking Licenses in Singapore
(A) Full Licence Banks
.Full banks are authorized to transact the whole range of banking business, both p&c.
.Full banks are issued to all local banks and some foreign full banks.
.Most full licence banks have also been granted the ACU licence to transact foreign currencies.
.Institutions with ACUs include most Full Banks, all Wholesale Banks, all Offshore Banks and all Merchant Banks.
Types of Banking Licenses in Singapore
(B) Wholesale Licence Banks
.Wholesale licence banks may engage in the same range of banking business as full banks, except that they do not carry out Singapore Dollar retail banking activities.
.All wholesale banks in Singapore, operate as branches of foreign banks.
.They operate by the Monetary Authority of Singapore.
.They are active in wholesale (corporate) banking market, and are not oriented towards personal banking.
.They rely largely on borrowings in the interbank market for whatever Singapore dollars they may require.
Types of Banking Licenses in Singapore
(C) Offshore Licence Banks
.Offshore banks can engage in the same activities as all full and wholesale banks for businesses transacted through ACUs.
.The banks’ Singapore dollar transactions are separately booked in the DBU.
.The scope of business transacted in offshore banks’ DBU has slightly more restrictions on dealings with residents as compared with wholesale banks.
.They operate within the Guidelines for Offshore Banks issued by MAS.
.Offshore licence is issued to some foreign banks.
.Under the banking liberalisation programme, offshore banks were given greater flexibility in Singapore dollar wholesale business.
.They had their Singapore dollar lending limit raised to S$500 million.
.They are now allowed to engage in Singapore dollar swaps in respect of proceeds arising from the issue of Singapore dollar bonds managed or arranged by them.
Types of Banking Licenses in Singapore
(D) Qualifying Full Bank Licence (QFB)
QFB granted to 8 foreign full banks.
.Some of the foreign full banks operating in Singapore have been awarded QFB privileges. .A QFB licence allows a foreign bank to set up branches and off-site ATMs at 25 locations across Singapore.
.The banks can open new branches, relocate existing branches and install off-site (off-bank premises) ATMs.
.They are able to perform and conduct the full range of banking services, including retail deposit-taking.
.These services are similar to those conducted by local Full Licence Banks.
.Under the enhanced programme announced on 29 Jun 2012, a few of the QFBs may be granted an additional of 25 places of business, of which up to 10 may be branches if they locally incorporate their retail operations, to operate as local subsidiaries.
.To determine if a QFB is significantly rooted, MAS will consider a range of quantitative and qualities attributes.
Who may engage in the same range of banking business as full banks, except that they do not carry out Singapore Dollar retail banking activities?
Wholesale Licence banks
Who are able to perform and conduct the full range of banking services, including retail deposit-taking. These services are similar to those conducted by local Full Licence Banks?
QFB
Who can engage in the same activities as all full and wholesale banks for businesses transacted through ACUs?
Offshore
