SINGAPORE Feb 14 Singapore will for the primary time permit foreign takeovers of non-bank finance firms as part of steps to strengthen their monetary resilience and operational flexibility, the central financial institution stated on Tuesday.
MAS will retain other regulatory restrictions on finance companies, comparable to restrictions on overseas forex exposures and derivatives buying and selling. To safeguard prudential requirements as finance firms grow, MAS may even require these firms to reinforce their corporate governance and danger administration, together with imposing stricter rules on related occasion transactions and limits on exposures to the property sector.
Finance corporations are licensed by MAS to take deposits and loans. Currently, there are three – Hong Leong Finance, Sing Investments and Finance and Singapura Finance, with combined property of S$sixteen billion. In Q2, 2016, finance companies accounted for almost S$7 billion in excellent loans to SMEs, which is about eight.5 per cent of whole … Read more