Singapore banks urged to assess haze-linked customers
MAS said clear environmental law breaches would warrant tougher measures, potentially including financing limits or ending customer relationships.
The Monetary Authority of Singapore (MAS) has restated its expectations for banks responding to haze-related environmental risks, saying lenders should engage potentially affected customers and consider financing restrictions where warranted.
Banks should seek enough information to assess customers’ possible involvement in activities contributing to haze, the regulator said. That assessment should cover whether customers have adequate arrangements for fire prevention, detection and suppression.
For customers presenting heightened environmental risks, possible responses include attaching conditions to financing, changing lending terms, restricting additional exposure or reconsidering the relationship. MAS said clear violations of environmental laws would justify stronger action, which could extend to ending customer relationships.
The regulator said banks should identify and evaluate material environmental risks from their activities and exposures, then manage and monitor them. These include risks involving pollution and deforestation. Lenders should also consider relevant information published by the National Environment Agency under the Transboundary Haze Pollution Act.
MAS backed DBS, OCBC and UOB in their opposition to burning practices. It said the supervisory expectations sit within its environmental risk management guidelines from 2020 and are expanded on in transition planning guidelines issued in March 2026. The latter take effect in September 2027 after an 18-month transition period.
