MAS Standing Facility

Description

The MAS Standing Facility is a two-sided discount window that allows eligible counterparties to borrow Singapore dollars ("SGD") on an overnight and collateralised basis, or deposit SGD on an overnight basis. It helps to reduce day-to-day SGD interest rate volatility and enhances market confidence that liquidity needs will be met in times of stress.

Eligible Counterparties

Participants in MAS’ real-time gross settlement system ("MEPS+") or any other financial institution as may be approved by MAS that have entered into a PSA-ISMA Global Master Repurchase Agreement and/or an ISDA Master Agreement with MAS.

Transaction Type

Loan transactions

Repurchase transaction, foreign currency swap, or collateralised loan.

 

Deposit transactions

Clean deposit.

Tenor

Overnight.

Rate

Loan transactions

Reference rate plus 50 basis points.

 

Deposit transactions

Reference rate minus 50 basis points, floored at zero.

The reference rate is the weighted average of successful bids for MAS’ S$500m overnight clean borrowing or loan conducted during Money Market Operations on the same day, rounded to two decimal places.

Eligible Collateral

Category A1: SGD collateral settled in MEPS+

SGS, MAS Bills.

 

Category A2: other SGD collateral

S$ Sukuk issued by Singapore Sukuk Pte Ltd, S$ debt securities (including sukuk) issued by any Singapore statutory board and AAA-rated or AA-rated public sector entity, supranational, sovereign, sovereign-guaranteed company or non-financial company.  

 

Category B: Foreign currency collateral

Certain foreign currencies and foreign currency government and central bank securities under cross-border collateral arrangements ("CBCAs") that MAS has established with other central banks. These central banks include Bank Negara Malaysia, the Bank of England, Bank of Thailand, Banque de France, De Nederlandsche Bank, Deutsche Bundesbank, and the Federal Reserve Banks. Please contact the Monetary and Domestic Market Management Department for eligibility.

Initial Haircuts

Categories A1 and A2

Time to maturity

Haircut (%)

0-5 years

2

>5-10 years

3

>10 years

5

 

Category B

Please contact the Monetary and Domestic Market Management Department to enquire.

Operating Window

Category A1

6.00 pm to 6.25 pm.

 

Categories A2 and B

2.30 pm to 3.30 pm.

Settlement

Categories A1 and A2

Same day, after the settlement of collateral.

 

Category B

Upon confirmation of settlement of collateral with the corresponding foreign central bank.  Please refer to the Terms and Conditions for more details.

Contact Information

Official dealing line: +65 6229 9150
Email: sgddiv@mas.gov.sg

Complete Terms and Conditions

 Terms and Conditions of MAS Standing Facility wef 13 May 2015

Last Modified on 26/11/2016