With the highest trade to GDP in the continent of Asia, ranging about 400% in 2008-2011, Singapore is considered to be one of the most successful countries in the world. This has prompt many banks overseas and offshore to set their branches up in Singapore.
The government of Singapore welcomes companies who want to setup their branches and encourages them well. However, a certain criteria is laid out by the law to assess the applicants who wish to gain a banking license in the country.
What is the admission criteria ?
- Financial soundness and international standing. The government will track the records of the company and its reputation to its parent company or the major shareholders. There will be an assessment of your company’s ability and its parent company in being able to meet the international requirements. The ranking of your company and the parent company relative to the world and the home country is also considered which is usually based on the total assets and strength of equity.
- Supervision and willingness of the home country authority to cooperate. This criterion includes supervision of your company and its parent company by the authority in your home country. This also takes into consideration the legal framework of the authority for cross-border cooperation and coordination, as well as resolution planning. To start with, your company should have a written consent from the supervisory authority of your home country to be able to establish a banking service in Singapore.
- Well-planned strategy in financial services. The government of Singapore will go over the strategies that your company would adopt, which is supported and supplemented with business plans. These business plans are usually composed of details of the assessment on the economic viability and its sustainability aspect, and the nature and form of the business.
- Risk Management Systems. These systems and processes should be robust and proportionate with the complexity and form of the proposed business bank.
Why should you setup an offshore bank in Singapore ?
- Full support from the government of Singapore. As long as the criteria from above are duly and fully satisfied, the government will help your banks in setting up in the country.
- Political stability. Businesses and the whole of economic sector of Singapore is also stable as a result. Your bank can always be assured to be in operation for many years.
- Rigid policies and regulations. These regulations reflect the efficient ability of the government in implementing sound policies that promote the private sector.
- Competent workforce. Singapore is one of the leading countries that produce competent workforce. A test called WSQ is taken to assess their competency in various industries.
The staff of AccountingGuru has helped a number of foreign banks to setup their branches in Singapore. Call our office at (+65) 6728 5483 to book your appointment.