Financial Services and Markets (Amendment) Bill introduces total loss-absorbing capacity requirements.

The proposed Bill grants the Monetary Authority of Singapore (MAS) the power to mandate that systemically important financial institutions maintain minimum total loss-absorbing capacity. This framework is designed to work alongside existing MAS powers to bail in senior unsecured and subordinated debt during financial distress.

Why it mattersLawyers advising systemically important financial institutions must prepare for new capital and solvency requirements imposed by MAS.