On 20/06/2013,
you requested for the version in force on 20/06/2013
incorporating all amendments published on or before 20/06/2013.
The closest version currently available is that of 01/05/2011.
PART VI
MINIMUM ASSET REQUIREMENTS
38.
—(1) The Authority may, from time to time, by notice in writing to any bank in Singapore or class of banks in Singapore, impose requirements in relation to the minimum amount or amounts of liquid assets to be held by the bank or class of banks, having regard to the risks arising from the activities of the bank or class of banks, as the case may be, and such other factors as the Authority considers relevant.
[23/2001]
(2) Without prejudice to the generality of subsection (1), the Authority may, in a notice issued under that subsection, impose limits on each liquid asset or class of liquid assets to be held by a bank or class of banks.
[1/2007]
(2A) Where the Authority issues a notice under subsection (1) to a class of banks, the Authority may require different banks within the class of banks to hold different amount or amounts of liquid assets, having regard to the risks arising from the activities of each bank, the systemic impact of each bank on the financial sector and such other factors as the Authority may consider relevant.
[1/2007]
(3) Whenever the Authority issues a notice under subsection (1), each bank shall be allowed such period of grace, being not less than 3 business days, as may be specified in the notice, in which to comply with its provisions.
[23/2001; 1/2007]
(4) A bank shall not, during any period in which it has failed to comply with any requirement imposed under subsection (1), without the approval of the Authority, grant further advances to any person.
[1/2007]
(5) For the purpose of computing the minimum amount or amounts of liquid assets under this section and specified assets under section 40, and the sight, savings account, time and other liabilities of a bank carrying on business in Singapore and elsewhere, the offices and branches of the bank in Singapore shall be deemed to constitute a separate bank carrying on business in Singapore.
(6) The Authority may by notice in writing require each bank in Singapore to render such returns as the Authority considers necessary for the implementation of this section.
[23/2001]
(6A) The Authority may, at any time, utilise the liquid assets of a bank held for the purposes of subsection (1) for the settlement of the bank’s payment obligations, book-entry securities and instruments under any real-time gross settlement system established and operated under section 29A of the Monetary Authority of Singapore Act (Cap. 186), notwithstanding that this may result in the bank failing to comply with any requirement imposed under subsection (1).
[1/2007]
(6B) Notwithstanding subsection (1) and subject to subsection (6E), a bank may, in accordance with the requirements imposed under subsection (6C), utilise its liquid assets held for the purposes of subsection (1) if the bank —
(a)
is in a liquidity stress situation; and
(b)
is solvent immediately before, and will remain solvent after, the utilisation of its liquid assets.
[1/2007]
(6C) For the purposes of subsection (6B), the Authority may, from time to time, by notice in writing to a bank impose requirements in relation to the utilisation by the bank of its liquid assets held for the purposes of subsection (1), including —
(a)
the procedures which the bank must comply with before or after utilising, or during the utilisation of, its liquid assets; and
(b)
the manner in which the bank may utilise its liquid assets.
[1/2007]
(6D) A bank shall, within such time as may be specified by the Authority, provide any information required by the Authority in relation to its liquidity stress situation and the utilisation of its liquid assets held for the purposes of subsection (1).
[1/2007]
(6E) Where the Authority is of the opinion that —
(a)
a bank is not in a liquidity stress situation;
(b)
a bank has failed to comply with any requirement imposed under subsection (6C);
(c)
a bank is or is likely to become insolvent, or that it is or is likely to become unable to meet its obligations, or that it is about to suspend payments; or
(d)
it is in the public interest to do so,
the Authority may by notice in writing to the bank —
(i)
where the bank has already utilised its liquid assets held for the purposes of subsection (1), direct the bank to comply with any requirement imposed under subsection (1) within such time as may be specified by the Authority in the notice; or
(ii)
where the bank has not, or has not fully, utilised its liquid assets held for the purposes of subsection (1), do one or more of the following:
(A)
refuse to allow the bank to utilise its liquid assets held for the purposes of subsection (1) which are within the control of the Authority;
(B)
direct the bank to cease utilising its liquid assets held for the purposes of subsection (1);
(C)
direct the bank to comply with any requirement imposed under subsection (1) within such time as may be specified by the Authority in the notice.
[1/2007]
(7) Any bank which fails to comply with any requirement imposed under subsection (1) shall be liable to pay, on being called upon to do so by the Authority, for every day or part thereof of such failure, a financial penalty in accordance with such formula as the Minister may, by order published in the Gazette, prescribe.
[1/2007]
(8) For the avoidance of doubt, for the purposes of subsections (4) and (7), a bank shall be treated as having failed to comply with a requirement imposed under subsection (1) even if such failure is the result of an action of the Authority under subsection (6A).
[1/2007]
(8A) Any bank which fails to comply with —
(a)
subsection (4) or (6D);
(b)
any requirement of the Authority under subsection (6) or (6C); or
(c)
any direction of the Authority under subsection (6E),
shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $250,000 and, in the case of a continuing offence, to a further fine of $25,000 for every day or part thereof during which the offence continues after conviction.
[1/2007]
(9) In this section —
“liquid assets” means —
(a)
notes and coins which are legal tender in Singapore other than assets maintained and held for the purposes of section 40;
(b)
balances with the Authority other than cash balances maintained for the purposes of section 39 and assets maintained and held for the purposes of section 40; and
(c)
such other assets as the Authority may from time to time approve;
“liquidity stress situation” has the meaning given to it in the Fifth Schedule.
[1/2007]
39.
—(1) The Authority may, from time to time, by notice in writing to any bank in Singapore, or any class of banks in Singapore, require the bank or banks to maintain minimum cash balances, not exceeding 30% of its or their deposits and other liabilities, on deposit with the Authority as reserves against its or their deposits and other liabilities.
[1/2007]
(2) Subject to the limit specified in subsection (1), the Authority may —
(a)
prescribe different ratios for different types of liabilities; and
(b)
further prescribe the method of computing the amount of the required reserves.
[23/2001; 1/2007]
(2A) Where the Authority issues a notice under subsection (1) to a class of banks, the Authority may require different banks within the class of banks to maintain different minimum cash balances, having regard to the risks arising from the activities of each bank, the financial soundness of each bank and such other factors as the Authority may consider relevant.
[1/2007]
(3) Any prescription of, or change in, the minimum reserve requirements under subsection (1) or (2) shall take effect only after the expiration of 30 days’ notice to the banks of the Authority’s intention to take such action.
(4) Where a bank (referred to in this section as the defaulting bank) has failed to maintain sufficient minimum cash balances required under subsection (1), the Authority may by order in writing direct the defaulting bank to make good the deficiency within the period specified in the order and the defaulting bank shall comply with the requirements of the order.
(5) If the defaulting bank fails to make good the deficiency within the period specified in the order referred to in subsection (4), it shall be lawful, notwithstanding the provisions of any other written law, for the Authority to serve a notice in writing upon any other bank in Singapore with which the defaulting bank has a credit balance, whether in current or deposit account, directing that bank to transfer to the Authority such amount as is specified in the notice as being equivalent to the amount of the deficiency in the minimum cash balances of the defaulting bank required under subsection (1) and the other bank shall immediately comply with the requirements of that notice.
[23/2001]
(6) No action shall lie against, and no liability shall attach to, any bank in Singapore that complies with the requirements of a notice referred to in subsection (5) for any loss or damage suffered by the defaulting bank as a result of the other bank taking action in compliance with the requirements of that notice.
[23/2001]
(7) Any bank which fails to comply with any requirement of the Authority under subsection (1) shall be liable to pay, on being called upon to do so by the Authority, for every day or part thereof of such failure, a financial penalty in accordance with such formula as the Minister may, by order published in the Gazette, prescribe.
[1/2007]
(8) The Authority may call upon a bank to pay a financial penalty under subsection (7) in addition to any action taken in relation to the bank under subsection (4) or (5).
[1/2007]
40.
—(1) The Authority may, from time to time, by notice in writing to any bank in Singapore, or any class of banks in Singapore, require the bank or banks to maintain and hold such minimum amount or amounts of assets in Singapore as may be specified in the notice for the purpose of meeting its or their liabilities.
[1/2007]
(2) Without prejudice to the generality of subsection (1), the Authority may, in a notice issued under that subsection, specify —
(a)
the types of liabilities in respect of which assets are to be maintained and held in Singapore;
(b)
the types of assets that are to be treated as assets maintained and held in Singapore and the minimum amount or amounts in respect of each asset for the purpose of any requirement of the Authority under that subsection; and
(c)
the method for the valuation of assets maintained and held in Singapore, including any deductions to be made in respect of the assets.
[1/2007]
(3) Where the Authority issues a notice under subsection (1) to a class of banks, the Authority may require different banks within the class of banks to maintain and hold different minimum amount or amounts of assets in Singapore, having regard to the financial soundness of each bank, the risk profile of each bank and such other factors as the Authority may consider relevant.
[1/2007]
(4) Any bank which fails to comply with any requirement of the Authority under subsection (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $250,000 and, in the case of a continuing offence, to a further fine not exceeding $25,000 for every day or part thereof during which the offence continues after conviction.
[1/2007]