The initial paid-up capital for the entrants is $15 million, during which the two new digibanks will be known as restricted DFBs. The likes of Grab-Singtel and Sea can only be full DFBs after they comply with minimum capital requirements of $1.5 billion, and other requirements such as the net stable funding ratio, liquidity ratio and certain common equity tier-one ratios.
On Dec 4, 2020, the Monetary Authority of Singapore (MAS) announced the successful applicants for two digital full bank (DFB) licenses are a joint-venture comprising a duo, Grab Holdings and Singapore Telecommunications (Singtel), and Sea (formerly known as Garena, which is now the name of its gaming unit).
The conditions that MAS had outlined to qualify included a five-year financial projection which must show a path towards profitability. The assumptions of the financial projection must be reviewed by an external and independent expert, MAS added.
