Singapore legislation
Section 29
Section 29
Exposures and credit facilities resulting in concentration risk
(1)
The Authority may by written notice to any bank in Singapore, or any class of banks in Singapore, impose requirements that are necessary or expedient for the purposes of —
identifying any person or class of persons, where exposure of the bank, or a bank within the class of banks, to the person or class of persons may result in concentration risk to the bank; or
limiting the exposure of the bank, or a bank within the class of banks, to any person or class of persons, where the exposure may result in concentration risk to the bank.
(2)
Without limiting subsection (1), the Authority may in a notice issued under that subsection —
specify the limit on any exposure;
exclude any exposure from any limit;
specify the manner in which and the process by which —
any exposure is to be measured or aggregated; and
a person or class of persons mentioned in subsection (1)(a) or (b) is to be identified;
exclude any bank or class of banks from any requirement imposed under subsection (1);
vary any limit in a particular case;
require the bank in Singapore or a bank within the class of banks in Singapore to report its exposures to the Authority; and
specify the manner in which and the times at which the bank in Singapore or a bank within the class of banks in Singapore must report its exposures to the Authority.
(3)
A bank in Singapore must not grant any credit facility against the security of its own shares.
(4)
[Deleted by Act 5 of 2016]
(5)
[Deleted by Act 5 of 2016]
(6)
Any bank which fails to comply with subsection (3) or any requirement imposed under subsection (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $100,000 and, in the case of a continuing offence, to a further fine not exceeding $10,000 for every day or part of a day during which the offence continues after conviction.
(7)
In this section, “exposure” has the meaning given in the Fifth Schedule.