Monetary Authority of Singapore to Issue up to Five Digital Bank Licenses

1.

Digital full bank license

• Open to companies headquartered in Singapore and controlled by Singaporeans.
• Foreign companies are eligible if they form a joint venture with a local company and the joint venture meets the headquarters and control requirements.
• Applicant or its parent group must have the requisite track record, value proposition and sustainable digital banking business model.
• The digital full bank must 

• be incorporated in Singapore
• participate in the deposit insurance scheme provided by the Singapore Deposit Insurance Corporation
• comply with same suite of prudential rules as incumbent banks
• submit a viable exit plan to facilitate an orderly windup if necessary 

• There will be a two-stage phasing-in process for a digital full bank:

• Under the first stage, the digital full bank will be subject to business limitations such as caps on aggregate deposits, restrictions on business (for example, it may not offer complex investment products such as structured notes, nor engage in investment banking activities such as derivatives and proprietary trading) and a minimum paid-up capital of S$15 million.
• Under the second stage, the digital full bank will be able to carry out a wider range of services but will be subject to more stringent requirements such as a minimum paid-up capital requirement of S$1.5 billion. The transition from first stage to second stage may be a gradual process. For example, MAS may impose progressively higher caps on deposits and minimum paid-up capital as the digital full bank offers more and more services. MAS will consider factors such as business and financial performance, quality of loans, products and customer service, ability to serve needs of identified segments and risk management when assessing a digital full bank’s readiness to transition from first stage to second stage.
  

2. 

Digital wholesale bank license

• Applicant or its parent group must have the requisite track record, value proposition and sustainable digital banking business model.
• The digital wholesale bank must be incorporated in Singapore.
• Must have a minimum paid-up capital of S$100 million.
• Not permitted to take Singapore dollar deposits from individuals, except for fixed deposits of at least S$250,000. However, permitted to take deposits from small and medium-size enterprises and corporates.
• Same capital and liquidity rules as existing wholesale banks in Singapore.