In a statement on Thursday, MAS said the delay would «allow the digital bank license applicants to dedicate their resources and attention towards managing the immediate impact of the COVID-19 pandemic on their businesses,» MAS said.
The Monetary Authority of Singapore (MAS) will extend the digital bank assessment period for the award of digital bank licenses to the second half of the year, owing to the ongoing Covid-19 pandemic and the disruptions caused by the enhanced safe distancing measures in Singapore.
MAS said this would allow it to «focus resources on ensuring monetary and financial stability, and ensuring that financial institutions remain resilient, and able to perform their role in supporting businesses and individuals through this challenging time.»
The regulator originally planned to announce the recipients of the digital bank licenses in June 2020. There are 21 applicants for up to five licenses on offer – two for full digital banks, and three for digital wholesale banks, which has a lower capital commitment and is open to foreign firms. The applicants range from e-commerce firms, technology, and telecommunications companies, t0 fintech and financial institutions.
Delays in Malaysia
Earlier this week, Bank Negara Malaysia, the country's central bank said it would be extending the consultation period for the exposure draft on the licensing framework for the country's digital banking regime to 30 June 2020. The consultation period was previously extended from February to the end of April 2020.
According to «Fintech News Malaysia,» potential applicants include the likes of Axiata, Razer, Grab and Hong Kong-based AMTD Group.
