Standard Chartered is systemically important for the lion city. What are the consequences?
London-based Standard Chartered has been designated a systemically important bank in Singapore and will continue to hold the full bank license with qualifying full bank privileges, according to a statement sent on Thursday.
As a result, the British bank will split its commercial banking, corporate and institutional banking and private banking businesses into subsidiaries. The transfer is expected to complete in the next 12 to 18 months, subject to legal and regulatory approvals.
The business units which are currently operating in Standard Chartered Bank, Singapore Branch, will be transferred to Standard Chartered Bank (Singapore).
Domestic systemically important banks in Singapore are assessed to have the potential to have a significant impact on the Singapore financial system’s stability and the proper functioning of the economy. All these institutions in Singapore have to undergo an annual assessment of their systemic importance.
