MAS expects stronger measures over environmental breaches

MAS has reinforced supervisory expectations amidst the current haze.

The Monetary Authority of Singapore (MAS) expects banks to take stronger measures, including limiting exposures or exiting the relationship, when clients clearly breach environmental laws.

MAS has reinforced its supervisory expectations for banks in light of the haze situation, it said in a statement on 28 October.

Banks should engage clients that may be linked to activities contributing to haze, and obtain sufficient information to understand their role and involvement, including whether adequate measures are in place to prevent, detect, and stop fires.

Where heightened environmental risks are identified, they should take appropriate measures to mitigate them, including imposing conditions, reviewing financing terms, limiting further exposures, or reassessing the customer relationship.

Banks are also expected to identify, assess, manage, and monitor material environmental risks arising from their activities and exposures, including risks associated with pollution and deforestation.

In doing so, they should also consider relevant information that the National Environment Agency releases under the Transboundary Haze Pollution Act.

The central bank said it supports the local banks’ clear stance against burning practices, and noted that the banks will take strong action where warranted.

The expectations are set out in MAS’ Guidelines on Environmental Risk Management issued in 2020 and further elaborated in the Guidelines on Transition Planning issued in March 2026.