• Table of Contents

  • Banking license in Singapore: How to get it?
  • What is a Banking License in Singapore?
  • Types of Bank Licenses in Singapore
  • Full Bank License
  • Restricted Bank License
  • Requirements to Obtain a Banking License in Singapore
  • Governance Requirements
  • Funding Requirements
  • Regulatory Compliance Requirements
  • Process to Obtain a Banking License in Singapore
  • Step 1: License Application
  • Step 2: Application Assessment
  • Step 3: Preliminary examination
  • Step 4: Thorough Review
  • Step 5: SAM decision
  • Examples of Banking Licenses in Singapore
  • DBS Bank
  • United Overseas Bank
  • Oversea-Chinese Banking Corporation

Banking license in Singapore: How to get it?

Singapore is a leading financial center in Asia, providing business and investment opportunities for businesses around the world. For companies wishing to do banking in Singapore, obtaining a banking license is a crucial step. In this article, we are going to look at the requirements and processes for obtaining a banking license in Singapore.

What is a Banking License in Singapore?

A banking license in Singapore is a legal authorization granted by the Monetary Authority of Singapore (MAS) to a company to conduct banking business in the country. Banking activities include collecting deposits, granting loans, providing payment services and other financial services.

Companies wishing to do banking in Singapore must obtain a banking license from the MAS. The MAS is Singapore's financial regulator and is responsible for supervising and regulating the country's financial institutions.

Types of Bank Licenses in Singapore

There are two types of banking licenses in Singapore:

• Full Bank License
• Restricted Bank License

Full Bank License

A full banking license allows a business to engage in all banking activities permitted in Singapore, including taking deposits and making loans. Companies wishing to obtain a full banking license must meet strict financial and governance requirements.

Restricted Bank License

A restricted banking license allows a business to engage in certain specific banking activities, such as providing payment services or managing funds. Companies wishing to obtain a restricted banking license must also meet strict financial and governance requirements, but these requirements are less stringent than those for a full banking license.

Requirements to Obtain a Banking License in Singapore

To obtain a banking license in Singapore, companies must meet strict governance, capitalization and regulatory compliance requirements. Here are the main requirements to obtain a banking license in Singapore:

Governance Requirements

Companies wishing to obtain a banking license in Singapore must have a strong and effective governance structure. This includes a competent and experienced Board of Directors, as well as a competent and experienced management team.

Companies should also have clear policies and procedures for risk management, regulatory compliance, and anti-money laundering and anti-terrorist financing.

Funding Requirements

Companies wishing to obtain a banking license in Singapore must have a minimum capital of S$1,5 billion (approximately US$1,1 billion) for a full banking license and S$100 million (approximately US$74 million US dollars) for a restricted banking license.

Companies must also have adequate capital ratios to guarantee their solvency and their ability to face financial risks.

Regulatory Compliance Requirements

Businesses seeking a banking license in Singapore must comply with all applicable financial services laws and regulations. This includes compliance with international anti-money laundering and anti-terrorist financing standards, as well as compliance with consumer protection standards.

Process to Obtain a Banking License in Singapore

The process to obtain a banking license in Singapore is rigorous and can take several months or even years. Here are the main steps in the process:

Step 1: License Application

The first step to obtaining a banking license in Singapore is to submit an application to the MAS. The application should include detailed information about the company, including its governance structure, proposed activities and financial plans.

Companies must also provide information on their experience and expertise in financial services, as well as their ability to comply with Singapore's regulatory requirements.

Step 2: Application Assessment

Once the application is submitted, MAS conducts a thorough assessment of the company and its proposed activities. This includes an assessment of the company's governance structure, its financial plans and its ability to comply with Singapore's regulatory requirements.

MAS can also perform regulatory compliance and anti-money laundering and counter-terrorist financing audits.

Step 3: Preliminary examination

If the MAS finds that the business meets the requirements to obtain a banking license in Singapore, it conducts a preliminary review of the application. This includes an assessment of the company's governance structure, its financial plans and its ability to comply with Singapore's regulatory requirements.

MAS can also perform regulatory compliance and anti-money laundering and counter-terrorist financing audits.

Step 4: Thorough Review

If the preliminary examination is successful, the MAS carries out a thorough examination of the application. This includes a more detailed assessment of the company's governance structure, its financial plans and its ability to comply with Singapore's regulatory requirements.

MAS can also perform regulatory compliance and anti-money laundering and counter-terrorist financing audits.

Step 5: SAM decision

Once the thorough review is complete, the MAS makes a decision on whether to grant the bank license. If the application is approved, the business must pay a license fee and comply with all Singapore regulatory requirements.

Examples of Banking Licenses in Singapore

Here are some examples of companies that have obtained a banking license in Singapore:

DBS Bank

DBS Bank is Singapore's largest bank and was founded in 1968. The bank obtained a full banking license in 1999 and is listed on the Singapore Stock Exchange.

United Overseas Bank

United Overseas Bank is the third largest bank in Singapore and was founded in 1935. The bank obtained a full banking license in 1981 and is listed on the Singapore Stock Exchange.

Oversea-Chinese Banking Corporation

Oversea-Chinese Banking Corporation is the second largest bank in Singapore and was founded in 1932. The bank obtained a full banking license in 198