Two digital banks in Singapore, backed by Grab and Sea respectively, are reportedly urging the Monetary Authority of Singapore to reconsider the deposit cap imposed on newly licensed lenders. The banks, Grab’s GXS Bank and Sea’s MariBank, are seeking a review of the limit and anticipate an update on the matter in the near future, according to unnamed sources cited in a Bloomberg report.
Under the current regulations, digital full bank license holders are subject to a deposit cap of S$50 million ($38 million) for the first two years of their operations. GXS Bank, which launched in August 2022 with support from Singapore Telecommunications, has witnessed significant growth in demand for its savings accounts, nearing the regulatory cap within months of its introduction. However, the bank believes that there is ongoing organic growth potential for such accounts. Sea, the backer of MariBank, declined to comment on the issue.
Both digital banks are now actively engaging with the authorities in an effort to have the deposit cap lifted, as they aim to continue expanding their services and operations in Singapore’s competitive banking landscape.
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