MAS revises single-borrower credit exposure limits for merchant banks
Singapore merchant banks must apply revised single-borrower exposure limits from 1 June 2027
Change
MAS revised Notice 1012 to set updated limits and reporting requirements for credit facilities granted by locally incorporated merchant banks to a single borrower or group of borrowers, effective 1 June 2027.
Why it matters
The revised notice changes the credit-risk boundary for locally incorporated merchant banks in Singapore. Merchant banks must align borrower-group exposure controls, limit-increase conditions and reporting templates before the new Notice 1012 takes effect and the 2021 version is cancelled.
Implications
- — Credit-risk teams at locally incorporated merchant banks in Singapore must update single-borrower and group-borrower exposure controls to comply with revised MAS Notice 1012 by 1 June 2027.
- — Regulatory-reporting teams at locally incorporated merchant banks must adopt the MAS Notice 1012 Reporting Template dated 22 May 2026 before the revised notice takes effect.
- — Merchant-bank legal and compliance teams must replace references to MAS Notice 1012 dated 11 June 2021 with the revised 22 May 2026 notice before the old notice is cancelled on 1 June 2027.
Who is affected
- — Credit-risk teams at locally incorporated merchant banks in Singapore
- — Regulatory-reporting teams at locally incorporated merchant banks
- — Legal and compliance teams at locally incorporated merchant banks
What to watch
- — Last revised: 2026-05-22
- — Effective: 2027-06-01 — MAS Notice 1012 and MAS Notice 1012 Reporting Template dated 22 May 2026 take effect.
- — Cancellation: 2027-06-01 — MAS Notice 1012 dated 11 June 2021 is cancelled.