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Singapore: MAS launches AI tool to assess sustainability in real estate loans
The Monetary Authority of Singapore ('MAS') launched, on 21 June 2022, its artificial intelligence ('AI') tool called 'NovA!'. In particular, the MAS noted that the tool assists financial institutions in assessing the sustainability performance of real estate loans, by harnessing AI to generate insights on financial risk. Furthermore, the MAS confirmed that, in the initial phase, the tool will focus on enhancing financial institutions' ability to assess companies' environmental impact and identify emerging environmental risks, specifically:
- at loan origination, to identify corporate borrowers whose sustainability metrics can be improved;
- during underwriting, to set appropriate sustainability performance targets; and
- for servicing of loans, to compare actual sustainability performance indicators against borrowers' self-declarations to detect greenwashing.
You can read the press release here.