Maintenance of adequate provision for bad and doubtful debts
s 23
Open ↗23. Every bank in Singapore must make provision for bad and doubtful debts and before any profit or loss is declared ensure that that provision is adequate.
Source
Banking Act 1970 PART 4 — RESERVE FUNDS, DIVIDENDS, balance sheets AND INFORMATION
Compiled from an official source version. Later amendments or repeals may not be reflected; the official text prevails. · Read the official text ↗
Publication and exhibition of audited accounts
s 25
Open ↗25.—(1) Every bank must exhibit in a conspicuous position in each of its offices and branches in Singapore —(a) a copy of its latest audited annual balance sheet and profit and loss account, together with any notes thereon, and a copy of the report of the auditors, except that in the case of a bank incorporated outside Singapore, those statements may be made in a manner that complies with the law for the time being applicable in the place of its incorporation or origin; (b) the full and correct names of all persons who are directors for the time being of the bank; and (c) the names of all subsidiary companies for the time being of the bank.[1/2020] (1A) The Authority may, by regulations made under section 78(1), require a bank or class of banks to make available, within a reasonable time, to any person upon the person’s request —(a) copies of the statements mentioned in subsection (1)(a); and (b) a document containing —(i) the full and correct names of all persons who are directors for the time being of the bank; (ii) the names of all subsidiary companies for the time being of the bank; and (iii) any additional information that the bank is required to publish under subsection (4).[1/2020] (2) Every bank must, within 5 months after the close of each financial year or within such period as the Authority may approve, publish in such manner as may be prescribed by regulations a copy of its latest audited annual balance sheet and profit and loss account containing at least such information as the Authority may require by written notice.[1/2020] (3) In the case of a bank incorporated outside Singapore, the statements mentioned in subsection (2) may be made in a manner that complies with the law for the time being applicable in the place of its incorporation or origin. (4) The Authority may, by written notice, require a bank to publish in addition to its balance sheet and profit and loss account under subsection (2) such additional information as the Authority thinks fit.[1/2020] (5) Any bank which fails to comply with this section shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $25,000 and, in the case of a continuing offence, to a further fine of $2,500 for every day or part of a day during which the offence continues after conviction.[5/2016]
Information to be provided by banks
s 26
Open ↗26.—(1) Every bank must provide to the Authority such information (including returns) at such time and in such manner as the Authority may reasonably require for the proper discharge of its functions. (2) Every bank must send to the Authority —(a) not later than 3 months after the close of its financial year or within such longer period as the Authority may on application of the bank approve —(i) in the case of —(A) a bank incorporated in Singapore, a copy of its latest audited financial statements as may be required to be laid at its annual general meeting under section 201 of the Companies Act 1967; or (B) a bank incorporated outside Singapore, a copy of its latest audited annual balance sheet and profit and loss account together with any notes thereon; (ii) a copy of the report of the auditors of the bank; (iii) a copy of the report of the directors of the bank; (iv) a duly audited balance sheet showing its assets used in, and liabilities arising out of, its operation in Singapore as at the date to which its balance sheet was made up; and (v) a duly audited profit and loss account which gives a true and fair view of the profit or loss arising out of the bank’s operation in Singapore for its last preceding financial year; (b) in the case of a bank incorporated in Singapore, within such period as the Authority may require, its interim profit and loss account for every half‑year or such other intervals as the Authority may determine; and (c) within such period and in such manner as the Authority may require, such further or additional information as the Authority may consider necessary either by way of explanation, amplification or otherwise with regard to any of the balance sheets and profit and loss accounts sent under paragraph (a) or (b).[35/2014] (3) In the case of a bank incorporated outside Singapore, the statements mentioned in subsection (2)(a)(i)(B), (ii) and (iii) may be made in a manner that complies with the law for the time being applicable in the place of its incorporation, formation or establishment.[35/2014] (4) The Authority may regard the balance sheet and profit and loss account as having been duly audited for the purpose of subsection (2)(a)(iv) and (v) if the balance sheet and profit and loss account are accompanied by a report by a public accountant within the meaning of the Companies Act 1967 which complies, insofar as it is practicable, with section 207 of that Act. (5) The Authority may require any statement submitted to it under subsection (1) to be accompanied by a certificate —(a) of the auditor appointed by the bank under section 58(1); or (b) of any other auditor appointed by the Authority under section 58(3), as to whether in the opinion of the auditor, the statement or information is correct. (6) Any information received from a bank under this section must be treated as secret by the Authority. (6A) Nothing in subsection (6) precludes the Authority from disclosing any information, not being customer information as defined in section 40A, received from a bank under this section if —(a) the information is in the public domain; (b) the information is disclosed in such a manner that the bank’s identity cannot be ascertained; (c) the bank or the person from whom the bank has obtained the information consents to the disclosure; (d) the person to whom the information relates consents to the disclosure; (e) the disclosure of the information is necessary for the performance of any principal object or function, or the exercise of any power, of the Authority under this Act or any other written law; or (f) the disclosure of the information is required under any written law.[5/2016] (6B) Nothing in subsection (6) prevents the Authority from disclosing any information received from a bank under this section if the disclosure is pursuant to an order of court in Singapore.[5/2016] (7) Nothing in this section prevents the Authority from preparing and publishing consolidated statements aggregating such information as may be provided under this section. (8) Any bank which contravenes subsection (1) or (2) or a requirement of the Authority under subsection (5) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $250,000 and, in the case of a continuing offence, to a further fine not exceeding $25,000 for every day or part of a day during which the offence continues after conviction.[5/2016] (9) Any bank which in purported compliance with this section provides any information to the Authority, knowing or reckless that the information is false or misleading in a material particular, shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $250,000.[5/2016] (10) Where a bank is guilty of an offence under subsection (8) or (9), any individual charged with the duty of securing the bank’s compliance with the subsection or requirement, and was in the position to discharge that duty, shall also be guilty of an offence and shall be liable on conviction —(a) if the individual committed the offence wilfully, to a fine not exceeding $125,000 or to imprisonment for a term not exceeding 3 years or to both; or (b) if the individual did not commit the offence wilfully, to a fine not exceeding $125,000.[5/2016] (11) Any bank which fails to take reasonable care that any information provided to the Authority in purported compliance with this section is accurate, shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $25,000.[5/2016]
Information on exposures, etc., to related parties
s 27
Open ↗27.—(1) The Authority may, by written notice, require any bank in Singapore or a bank within any class of banks in Singapore —(a) to prepare a statement in respect of each period of a duration specified by the Authority, in the form specified by the Authority, showing as at the end of that period —(i) all the credit facilities, or all the credit facilities of a specified type, from the bank or any branch or entity in its bank group to any person, branch, entity or head office set out in subsection (2); (ii) all the exposures, or all the exposures of a specified type, of the bank or any branch or entity in its bank group to any person, branch, entity or head office set out in subsection (2); and (iii) all the transactions, or all the transactions of a specified type, of the bank or any branch or entity in its bank group with any person, branch, entity or head office set out in subsection (2); and (b) to carry out other acts relating to a requirement mentioned in paragraph (a).[1/2020] (2) The persons, branches, entities or head offices mentioned in subsection (1) are the following:(a) any person in a director group of the bank; (b) in the case of a bank incorporated in Singapore, any person in a substantial shareholder group of the bank; (c) any entity in a major stake entity group of the bank; (d) any branch, entity or head office in a related corporation group of the bank; (e) any person in a senior management group of the bank; (f) any person in a key credit approver group of the bank; (g) any person in which any of the directors of the bank has a direct or indirect interest, as declared under section 28 (other than credit facilities, exposures or transactions particulars of which have already been supplied under this section); (h) any person whose duties or interests are in conflict with the interests of the bank, as determined by the bank in accordance with a manner and process specified by the Authority by written notice to the bank; (i) any person specified by the Authority by written notice to the bank whose duties or interests are, in the opinion of the Authority, in conflict with the interests of the bank; (j) any other person or class of persons that is prescribed.[1/2020] (3) Without limiting subsection (1)(b), a notice under that subsection may —(a) specify the manner in which and process by which any exposure is to be measured or aggregated; (b) require that a statement prepared for the purpose of subsection (1)(a) describes the manner in which and the process by which the bank calculated the exposures shown in that statement; and (c) require that a statement prepared for the purpose of subsection (1)(a) be accompanied by any document (including a legal opinion or a contract) relating to any credit facility, exposure or transaction shown in the statement.[1/2020] (4) A statement under subsection (1)(a) —(a) must be prepared within the period specified by the Authority by written notice, after the period in respect of which it is to be prepared; (b) must —(i) in the case of a bank incorporated in Singapore, be brought up and read at the next meeting of its board of directors after it is prepared; and (ii) in the case of a bank incorporated outside Singapore, be submitted to the head office of the bank; and (c) must be submitted to the Authority within 7 days after the date on which it is read at the meeting of the board of directors or submitted to the head office of the bank, as the case may be.[1/2020] (5) Any bank which fails to comply with subsection (4)(a), (b) or (c) 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.[1/2020] (6) In this section, “bank group”, “director”, “director group”, “exposure”, “key credit approver group”, “major stake entity group”, “related corporation group”, “senior management group”, “substantial shareholder group” and “transaction” have the meanings given in the Fifth Schedule.[1/2020]
Disclosure of interest by directors
s 28
Open ↗28.—(1) Every director of a bank in Singapore who has in any manner, directly or indirectly, an interest in a credit facility from or an exposure of, or a proposed credit facility from or exposure of, that bank must as soon as practicable declare the nature of the director’s interest to the board of directors of that bank and the secretary of that bank must cause the declaration to be circulated immediately to all the directors. (2) The requirements of subsection (1) do not apply in any case where the interest of the director consists only of being a member or creditor of a company which is interested in a credit facility from or an exposure of, or a proposed credit facility from or exposure of, that bank if the interest of the director may properly be regarded as of a trivial nature. (3) For the purposes of subsection (1), a general notice given to the board of directors of a bank by a director to the effect that the director is an officer or a member of a specified company, or a partner or manager of a specified firm or specified limited liability partnership, and that the director is to be regarded as having an interest in any credit facility or exposure which may, after the date of the notice, be granted to or acquired in respect of that company, firm or limited liability partnership, is deemed to be a sufficient declaration of interest in relation to any credit facility so granted or any exposure so acquired if —(a) it specifies the nature and extent of the director’s interest in that company, firm or limited liability partnership; (b) the director’s interest is not different in nature from or greater in extent than the nature and extent so specified in the notice at the time any credit facility is granted or any exposure is acquired; and (c) it is given at a meeting of the board of directors or the director takes reasonable steps to ensure that it is brought up and read at the next meeting of the board of directors after it is given. (4) Every director of a bank in Singapore who holds any office or possesses any property whereby, directly or indirectly, duties or interest might be created in conflict with the director’s duties or interest as director must declare at a meeting of the directors of that bank the fact and the nature, character and extent of the conflict. (5) The declaration mentioned in subsection (4) is to be made at the first meeting of the directors held —(a) after the person becomes a director of the bank; or (b) if already a director, after the person commences to hold the office or to possess the property, as the case may be. (6) The secretary of that bank must —(a) cause to be brought up and read any declaration made under subsection (1) or (4) at the next meeting of the directors after it is given; and (b) record any declaration made under this section in the minutes of the meeting at which it was made or at which it was brought up and read. (7) Any director who acts in contravention of subsection (1) or (4) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $125,000 or to imprisonment for a term not exceeding 3 years or to both. (8) In this section, “exposure” has the meaning given in the Fifth Schedule.
Back to Banking Act 1970 — full text
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