Compliance with Basel Convention on Bannking Supervision (BCBS) Regulations in Singapore

Abstract

The Basel Committee on Banking Supervision (BCBS) was established by the Central Bank in order to enable the international regulation and supervision of the banking practices undertaken by the different countries of the world. Such regulation is necessary to improve the quality of banking facilities provided to the people. This committee frames guidelines, regulations and standards in different areas of banking and encourages the member countries to comply with the same. The Committee is not a classical multilateral organization, in part because it has no founding treaty. BCBS does not issue binding regulation; rather, it functions as an informal forum in which policy solutions and standards are developed. But still, all the member countries make it mandatory in their respective countries and Singapore has always complies with the Basel Accords and has also promised to implement the latest Basel III accords before time. The Monetary Authority of Singapore represents Singapore at the discussions and it continues to contribute to discussions on the development of international regulatory proposals, and is committed to upholding and implementing these standards Monetary Authority of Singapore is requiring that Singapore banks both meet Basel III capital standards earlier and to exceed Basel III’s common equity requirements by 2%. The Monetary Authority of Singapore (MAS) announced in its official web site that Singapore incorporated banks will meet capital adequacy requirements that are higher than Basel III global capital standards Therefore, the Monetary Authority of Singapore has drawn significant proposals and amendments in order to implement the Basel III successfully in Singapore. And therefore Singapore has taken the necessary steps to ensure compliance with the BCBS Regulations. Therefore, in my study I have first given an outline of the BCBS structure, then I have dealt with the regulations bought in by the Basel III accords which is in force currently, then I have specifically dealt with the proposals and amendments undertaken by the Monetary Authority of Singapore towards the fulfillments of its obligations and lastly I have concluded my ananlysis of the same.