MAS amends MLA and LCR requirements for merchant banks in Singapore (Notice 1015), effective 1 September 2026
Merchant banks in Singapore must meet amended MLA/LCR requirements and adopt the revised Form 2 from 1 September 2026
MAS
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Change
On 28 May 2026, MAS issued Notice 1015 (Amendment) 2026, revising the Minimum Liquid Assets (MLA) and Liquidity Coverage Ratio (LCR) requirements for all merchant banks in Singapore, together with an amended Form 2 reporting form, effective 1 September 2026.
Why it matters
The amendment revises the MLA and LCR requirements that all merchant banks in Singapore — locally incorporated and branch — must meet under Notice 1015, issued under the Banking Act 1970. It also amends Form 2 (LCR, MLA, cashflows and available unencumbered liquid assets), so merchant banks must report on the revised form from the effective date; Form 1 is unchanged. The amendment is dated 28 May 2026 and takes effect on 1 September 2026, and forms part of a coordinated MAS update to the liquidity-requirement notices issued the same day for banks (Notice 649) and predominantly-banking designated financial holding companies (Notice FHC-N649).
Implications
- — All merchant banks in Singapore — locally incorporated and branch — must implement the amended MLA/LCR requirements under Notice 1015 by 1 September 2026, on which the prior requirements cease to apply.
- — Liquidity-risk and regulatory-reporting teams at merchant banks must adopt the revised Form 2 (LCR, MLA, cashflows and available unencumbered liquid assets) for reporting from 1 September 2026 — submissions on the superseded Form 2 after that date are non-compliant; Form 1 is unchanged and continues to apply.
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