ANZ may have to incorporate, and shift capital, to its retail banking operation in Singapore.The Monetary Authority in Singapore yesterday outlined plans to require foreign banks " that are important to the domestic market" to incorporate their retail operations. Institutional banking operations - which in the case of ANZ is both larger and growing fast - would be able to continue to operate through a branch.ANZ identified Singapore, alongside Hong Hong, as one of two "significant centres with broad capabilities" in its detailed briefings on its Asian businesses earlier this month.The threshold for which foreign banks will have to incorporate is yet to be set but will be tied in part to a bank's share of domestic deposits.At present it has only six branches in Singapore where its brand recognition is poor. The bank said recently that only four per cent of people could remember the bank's brand.The bank sources 41 per cent of its Asian deposit base in Singapore, though the majority of this would be from corporate customers.The MAS is dangling a carrot to foreign banks to incorporate, signalling they may be able to open as many as 50 branches.Analysis by Bloomberg suggested that ANZ and HSBC were two banks that will need to incorporate under the new policy. BNP, ICICI and Malayan Banking may also need to do so.Standard Chartered recently announced plans to incorporate in Singapore. Citi already trades through a subsidiary.As an incorporated entity foreign banks in Singapore will need to meet the MAS version of the Basel III capital requirements.