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New liquidity rules for banks to start taking effect from Jan 2015

Published on Jun 24, 2014 8:39 PM
 
Tighter rules aimed at bolstering the cash buffer banks must hold in case of emergency start will start taking effect in January, Trade and Industry Minister Lim Hng Kiang said on Tuesday, June 24, 2014. -- PHOTO: ST FILE

Tighter rules aimed at bolstering the cash buffer banks must hold in case of emergency start will start taking effect in January, Trade and Industry Minister Lim Hng Kiang said on Tuesday.

The new regulations centre around what is called a liquidity coverage ratio, a standard introduced under Basel III, the name given to wide-ranging reforms being implemented for the global banking industry.

It seeks to ensure that banks hold sufficient high-quality liquid assets to match their total net cash outflows over a 30-day period.

The Monetary Authority of Singapore consulted the public and the banking industry on these changes last August and took their feedback into account when finalising the new rules, Mr Lim said at an Association of Banks in Singapore dinner.

 
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