(Singapore) – Singapore’s Monetary Authority (MAS) is considering a review of its present policy that disallows foreign banks to acquire controlling stakes in local bank lenders.Rumours abound that Citigroup is interested in bidding for a local player, of which there are now really only 3 following recent rationalisation from 5 last year – DBS Group, UOB and OCBC.
MAS has been obliged to respond to market noise with an intention to look again at its policy of ensuring long term players in the market have interests aligned with those of “Singapore Inc”.
Foreign players are allowed to take positions in local banks so long as these are not controlling shareholdings.