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MAS to streamline framework for permissible non-financial businesses

It will refine the framework in two key aspects.

The Monetary Authority of Singapore (MAS) announced it will streamline the regulatory requirements for banks seeking to conduct or invest in permissible non-financial businesses.

The regulatory framework separating banks’ financial and non-financial businesses was introduced in 2001 to ensure that banks remained focused on their core businesses and competencies.

The banking landscape has evolved considerably since then, MAS said. Technological advancements have created opportunities for banks to provide customers with integrated financial and related non-financial services through digital platforms.

The proposed measures by MAS will give banks more flexibility to serve the needs of their customers while ensuring they remain focused on their core financial businesses.

MAS will refine the anti-commingling framework for banks in two key aspects.
First, MAS said it will make it easier for banks to conduct or invest in non-financial businesses that are related or complementary to their core financial businesses.

Second, 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.

"This recognises that online purchases of goods and services and the use of e-payment services are becoming increasingly integrated. MAS’ proposed refinement will allow banks to broaden their ability to provide a fuller suite of services to their retail customers. Beyond digital platforms, banks will need to seek case-by-case approval, as they should not be engaging in the sale of consumer goods or services as a business in its own right," the central bank said.

However, banks will continue to be prohibited from entering certain businesses such as property development and the provision of hotel and resort facilities.



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