• Revision of methodologies for limiting concentration risk and related party exposures.  To ensure that prudential limits remain relevant and are in line with international best practice, MAS proposes a number of changes to section 29.  Among others, the changes will apply limits on all exposures to a single counter-party or group of related counter-parties posing a single risk, instead of just on credit facilities as is presently the case.  Existing limits on lending to related corporations will also be widened to limit the exposures of a Singapore-incorporated bank to its substantial shareholder group(s), and exposures of a bank in Singapore to financial entities in which the bank holds a major stake.
  　
• Establishment of an asset maintenance framework for foreign bank branches.  The resolution of cross-border bank insolvencies is often complex and drawn-out, and there is usually uncertainty concerning the amount and speed of any recovery.  To improve the recovery of assets from a failed foreign bank branch in Singapore to meet the claims of depositors, MAS proposes to require foreign bank branches to maintain a minimum level of eligible assets in Singapore in proportion to their liabilities.
  　
• Enhancement of MAS' role in bank resolution.  To protect depositors and maintain stability in the financial system, MAS proposes that it be given wider powers in the resolution process to act expeditiously in resolving failed banks.  These powers are in line with international best practice, and can only be exercised under pre-defined conditions.  They include the ability for MAS to direct the sale of the business of a failed bank to another bank.

Source:  www.mas.gov.sg Press Release 31 Jul 2006