Singapore MPs debate giving MAS power to require loss-absorbing buffers at key banks

The Straits Times reports that Singapore MPs debated proposed laws giving MAS power to require key banks to hold a minimum pool of equity and debt to absorb major losses. MAS proposes a requirement equal to 14% of risk-weighted assets, with five years for implementation. MPs questioned whether the rules could raise banks’ costs and lending rates; Alvin Tan said MAS expects banks to withstand severe losses without excessive increases in funding costs.