SINGAPORE -- The Monetary Authority of Singapore (MAS) has awarded Qualifying Full Bank licenses to Hong Kong and Shanghai Banking Corp (HSBC) and Malaysian Banking Bhd (Maybank), effective from Jan. 1, 2002, according to a report in the Asian Banker.
QFB privileges allow the banks to establish up to 15 locations, of which up to 10 can be branches. The 15 locations can include both branches and off-site ATMs. The 10 sub-limit branches will include branches and limited-purpose branches with a shared ATM network; debit services through an EFT/POS network from July 2002; Supplementary Retirement Scheme and Central Provident Fund (CPF) Investment Scheme accounts; and can accept CPF fixed deposits from July 2002.
HSBC and Maybank beat out Bank of China and American Express Bank, which had also applied for the licenses.
Maybank, which started its Singapore operations in 1960, currently has the most extensive network of branches and ATMs among the foreign banks there with 22 branches and 24 ATMs.
Other institutions holding QFB licenses are ABN AMRO, BNP Paribas, Citigroup and Standard Chartered. Those licenses were awarded in 1999.
MAS is also upgrading the existing eight Qualifying Offshore Banks (QOBs) -- Bank of Novia Scotia, Credit Lyonnais, Dai-Ichi Kangyo Bank Limited, Industrial Bank of Japan, KBC Bank NV, National Australia Bank, Norddeutsche Landesbank Girozentrale and Tokai Bank Limited -- to Wholesale Bank (WB) status.
Eight additional banks -- Australia & New Zealand Banking Group Limited, BNP Paribas Private Bank, Credit Suisse, ING Bank NV, The Northern Trust Company, Sanpaolo IMI SPA, Unicredito Italiano SPA and Westdeutsche Landesbank Girozentrale -- will also receive WB privileges.
According to an MAS news release, the extension of QFB privileges to two more banks and WB privileges to 16 banks is part of an ongoing liberalization of the banking industry in Singapore.
MAS said it plans to progressively award WB privileges to all the remaining Offshore Banks, as well as to reputable new foreign entrants into the Singapore market. MAS will also consider further steps to liberalize the retail banking sector, including extending QFB privileges to more foreign banks.
Its aim is to promote keener competition, provide Singaporeans with higher quality banking services and add to the depth and competitiveness of the financial sector, according to the release.
