Singapore looks to covered bonds in financial hub push

15 Mar 2012

Singapore’s central bank is considering allowing domestic banks to issue covered bonds, in its latest step to develop the city-state’s capital markets. Bankers think the first deals could appear as early as September, but are sceptical that there will be heavy issuance.

The prudential policy department of the Monetary Authority of Singapore (MAS) has issued a consultation paper on a regulatory framework for local bank issuance of covered bonds. The central bank has proposed a cap of 2% of a bank’s assets, over-collateralisation of no less than 3% and a ...

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