The Monetary Authority of Singapore has accepted the recommendations of the Financial Sector Review Group for new disclosure policies for banks, to make Singapore banks more transparent and accountable while having little impact on their balance sheets. The recommendations are expected to be implemented within the financial year, and include:
- disclosure of profits/losses from dealings in securities, foreign exchange and other financial instruments as dealing profits/losses;
- categorization of securities as dealing securities, investment securities, investments in subsidiary companies and investments in associated companies;
- categorization of securities and investments in subsidiary and associated companies into debt/equity and quoted/unquoted;
- provision of movement schedule, in respect of specific and general provisions for bad and doubtful loans, specific provision for diminution in value of assets and interest-in-suspense;
- separate disclosure of significant items comprising components of other assets and components of other liabilities, and disclosure of assets pledged to third parties as security for liabilities of the bank, and the interest rate/rate fixing method and repayment date for debt securities issued by the bank; and
- analysis of items such as total assets and total income or profits before taxation by geographical groups.