SINGAPORE (Feb 14): Singapore’s central bank said it will allow foreign takeovers of the country’s three finance companies, as part of wider industry changes that seek to boost lending to small and medium-sized enterprises.

The Monetary Authority of Singapore is prepared to consider applications for mergers or acquisitions if any prospective partner “commits to maintaining SME financing as a core business” of the finance company being targeted, it said in a statement Tuesday.

“This will accord finance companies greater flexibility to explore strategic partnerships and innovative business models that can strengthen their SME financing business,” MAS said. It also unveiled plans to relax lending limits for the firms.

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