{
  "id": 16884991,
  "title": "MAS says banks should limit exposure or cut ties with clients over clear environmental breaches linked to haze",
  "url": "https://urgent.news/2026/10/28/mas-says-banks-should-limit-exposure-or-cut-ties-with-clients-over",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-28T10:20:38.000Z",
  "source": {
    "name": "The Business Times - Companies & Markets",
    "slug": "the-business-times-companies-markets",
    "url": "https://www.businesstimes.com.sg/companies-markets/mas-says-banks-should-limit-exposure-or-cut-ties-clients-over-clear-environmental-breaches-linked"
  },
  "original_language": "en",
  "account": "The Monetary Authority of Singapore (MAS) has urged banks to adopt stronger measures against customers who violate environmental laws, such as limiting exposure or severing client relationships. This comes amid heightened scrutiny of firms associated with Singapore's haze crisis. Banks are expected to identify, assess, manage, and monitor material environmental risks stemming from their activities and exposures, including pollution and deforestation. The National Environment Agency's information under the Transboundary Haze Pollution Act will be considered in this assessment. Following a directive from Senior Minister K Shanmugam, banks should evaluate their operations and supply chains of allegedly linked companies. MAS supports banks' zero-tolerance approach to open burning and deforestation practices and will take strong action where necessary. Banks must engage customers linked to haze-related activities, gather sufficient information, and ensure they have adequate measures in place to prevent, detect, and stop fires. The financial regulator's supervisory expectations for banks, outlined in 2020 and 2026 guidelines, emphasize the critical role of board members and senior management in incorporating environmental considerations into risk appetite, strategies, and business plans. Banks should develop a risk management framework to manage environmental risks systematically and consistently, identifying material environmental risk at both customer and portfolio levels. Transactions with higher environmental risks should undergo enhanced due diligence, including site visits and reviews by in-house or external personnel with environmental expertise. Banks must also disclose their approach to managing environmental risk periodically.",
  "summary": "It expects lenders to look at material environmental risks arising from clients’ activities and exposures",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}