Singapore’s Monetary Authority of Singapore (MAS) sets out risk-based capital adequacy expectations for locally incorporated banks through Notice 637, issued under the Banking Act 1970. The notice applies to locally incorporated Full Banks and locally incorporated Wholesale Banks.
Notice 637 consolidates three core requirements. First, it specifies capital adequacy ratio and leverage ratio requirements for locally incorporated banks, including the methodology and process for calculating those ratios. Second, it sets expectations for a bank’s Internal Capital Adequacy Assessment Process (ICAAP). Third, it establishes public disclosure requirements relating to a bank’s capital adequacy position and its risk exposures.
The notice is explicitly maintained through formal revisions and amendments. It is marked as last revised on 9 October 2025, and the MAS Notice 637 (Amendment) 2025 dated the same day is scheduled to take effect on 1 January 2026, except for specified amendments in Annex 10C, which take effect from 31 December 2025.
In practical terms, the update reinforces that capital adequacy compliance is not limited to meeting ratios. It also includes (i) robust internal assessment via ICAAP and (ii) transparent external communication through the required public disclosures, all within a clearly defined scope of locally incorporated banks and an implementation timeline tied to specific effective dates.
Source: Notice 637 Risk Based Capital Adequacy Requirements for Banks Incorporated in Singapore
