MAS 610 updates
This comment piece looks at the updates being made to the MAS610 reporting requirements
What are the changes being made?
In June 2010, the Monetary Authority of Singapore (MAS) released the new Singapore Standard Industrial Classification (SSIC) 2010 which will impact on the MAS610 reporting on “Loans and Advances by Industry” in Annex 1D Part III. Banks in Singapore should adopt this new classification standard no later than October 2010.
The changes were made by the Singapore Department of Statistics and are an update of the completion notes in MAS Notice 610 – submission of statistics and returns.
The SSIC are the national standard statistical classifications used in the collection, compilation, analyses and dissemination of economic data. It is revised every five years to take into account developments in economic activities and to closely align local classifications with latest recommendations of international bodies such as the UN Statistical Division.
What are the implications for banks?
When comparing the previous version with the latest, the changes are substantial (almost 99%). For example, formerly under grouping: 15 - Manufacture of Food Products, it consisted of 4 sub-classifications. Now it has been changed to grouping 10 and it consists of 8 sub-classifications. Without automation of MAS 610 report, this change requirement will be a difficult task for the bank users.
Singapore impacts: For SGMAS the SSIC list is used for Notice 610 Appendix I Annex 1D Part 3 and Top100 borrowers reporting.
Hong Kong impacts: For HKMA the SSIC list is used for report FORM L "Quality of Loans & Advances".
Who will and will not be affected?
All banks in Singapore are required to incorporate the new classifications in preparing the 610 Appendix 1 annex 1D Part 3 report.
Shawn Paul, Director Professional Services and Product Development, commented: "FRSGlobal is analysing the impact of the change to the current 'data heap' and generation of the report. All of our customers will receive a 'patch' very soon that will enable them to seamlessly comply with the change while non-customer banks scramble to analyse and implement the change themselves."
Paul continued: "There is often much efficiency lost in creating an incomplete solution to task that can be easily outsourced."
Selwyn Blair-Ford, Head of Regulatory Global Policy, adds: "The changes to the SSIC are significant and wide ranging, with the re-coding of almost every category, and some consolidation of existing codes. On top of this, the new categories have been added including, the manufacture of biofuels, the manufacture of solar wafers, carbon credit brokers/traders and patent brokerage activities have also had an impact. It is clear that this latest update has been created to capture the new emerging economic activities."