The Monetary Authority of Singapore (MAS), Singapore’s financial and central bank authority has reportedly awarded SRFB (Significantly Rooted Foreign Bank) privileges to Standard Chartered Singapore, which allows the bank to operate in additional places of business.
The agency said in the press release that Standard Chartered is the first financial service company to qualify as SRFB. This award enabled the bank to establish up to 50 places of businesses, of which 35 could be branches.
The regulator also announced that it is planning to improve the framework for such banks so that the banks that surpass the criteria for significant rootedness in Singapore may be offered more privileges such as the ability to create a distinct subsidiary to develop a different business model.
Under the improved framework, the agency will also consider granting an extra full bank license to SRFB that significantly surpass the SRFB baseline criteria.
Sources cite that the improved framework will allow banks to have similar flexibility as a Singapore-incorporated banking group to develop subsidiaries with joint-venture partners to operate alternative or new business models like a digital-only bank.
According to sources familiar with the knowledge of the matter, the agency will consider numerous additional factors to evaluate if SRFB surpasses the baseline criteria.
These factors include the full subsidization of banking operations in the nation, having a substantial proportion of Singapore-based global key appointment holders and heads, and demonstrating a constant commitment to the nation’s financial stability.
As per the agency, the improved SRFB framework will support the ability of SRFBs to aid the regional banks as anchors to the nation’s financial system. SRFB privileges, including additional full bank license, will continue to be delivered only under the nation’s FTAs that comprise SRFB commitments.
For the record, Standard Chartered Singapore granted with full bank license in 1999.
Source Credit- https://www.channelnewsasia.com/news/business/standard-chartered-privileges-foreign-banks-mas-12985056