The Hong Kong Monetary Authority (HKMA) and the Monetary Authority of Singapore (MAS) have announced the signing of a Memorandum of Understanding (MoU) on banking supervision cooperation.
After closely working together on banking supervision over the years, the HKMA and the MAS have now further expanded the supervisory cooperation, aiming to support the exchange of information. Additionally, the two regulatory bodies intend to provide mutual assistance for supervisory purposes.
MAS and HKMA’s development strategy
Considering the longstanding presence of Hong Kong and Singapore banks in both regions, this collaboration enhances the supervision of cross-border operations of financial institutions under the jurisdiction of both authorities. According to officials from the HKMA, the signing of the MoU solidifies the close ties between the two authorities and augments supervisory cooperation and information sharing in respect of cross-border banking matters in both Singapore and Hong Kong. Additionally, the MAS mentioned that the move reaffirms the strong partnership between the two regulators and paves the way for deeper cooperation. The two authorities intend to share best practices in key areas of mutual interest as part of this initiative.
By creating a structure for deeper collaboration, the alliance is set to optimise oversight efficiency, minimise systemic risks, and facilitate stability in both regions. The two regulators plan to focus on advancing cross-border banking while also serving the needs of consumers and businesses across Singapore and Hong Kong.
Furthermore, reportedly, Hong Kong and Singapore were also working on developing a regulated token corridor for cross-border finance infrastructure. According to Forbes, the two regions planned to establish policies for tokenised money, with Hong Kong launching a licensing regime for stablecoin issuers and Singapore introducing a stablecoin framework. Through this, the two jurisdictions sought to provide a regulated token corridor that facilitated cross-border financial operations.
