Singapore to announce Internet banking guidelines

Singapore is expected to announce its guidelines for Internet banking this week.

SINGAPORE, 17 July 2000 (Asia Pulse) - The guidelines are likely to refer to lower paid-up capital requirements and rules on foreign participation.

However, the new regulations are not expected to lead to a more relaxed regulatory regime for foreign banks that want to make an entry into the country, the Straits Times daily said today, quoting excerpts from an interview with Deputy Prime Minister and Monetary Authority of Singapore (MAS) chairman Lee Hsien Loong.

In the interview, to be fully published on July 26, Lee said: "Some changes will be necesssary. For example, the paid-up capital requirement to start a new bank -- supposed to be S$1.5 billion next year -- is very onerous; that may not be practical."

He said the guidelines would also address foreign partnerships because very often, a bank interested in going into Internet would want to bring in a foreign partner with the technology.

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