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

A Financial Institution that is a participant of MEPS+, or any other Financial Institution as may be approved by the Authority.

 

An Eligible Counterparty may borrow SGD funds via the SF if it has entered into a Global Master Repurchase Agreement (GMRA)1 with MAS.

 

1A Financial Institution intending to enter into a GMRA with MAS should contact MAS at the following address: sgddiv@mas.gov.sg.

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 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. 

 

The indicative list of issuers whose S$ debt securities may be eligible as collateral under Category A2 can be found here.

 

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 (%)

0-1 year

2

>1-5 years

2

>5-10 years

3

>10 years

4

 

Category B

Please contact the Monetary and Domestic Market Management Department.

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

Terms and Conditions2

1. Main Agreement (with effect from 18 April 2018)

2. Appendix A: Operational Procedures and Additional Guidance for Depositing SGD
Funds (Automated)

3. Appendix B: Operational Procedures and Additional Guidance for Obtaining SGD
Funds Using SGS and MAS Bills (Automated)

4. Appendix C: Operational Procedures for Obtaining SGD Funds using S$ Sukuk issued
by Singapore Sukuk Pte Ltd

5. Appendix D: Operational Procedures for Obtaining SGD Funds using S$ Debt Securities(including Sukuk)  issued by

    - Singapore Statutory Boards and

    - AAA-Rated or AA-Rated Public Sector Entities, Supranationals, Sovereigns, Sovereign Guaranteed Companies and Non-Financial Companies

6. Appendix E: Operational Procedures for Obtaining SGD Funds using Foreign
Currency (FC) and Foreign Currency Denominated Securities (with effect from 14
June 2018)

7. Appendix F: Contingency Procedures for the SF Automated Processes

 

2The above Terms and Conditions (inclusive of the Main Agreement and all its appendices listed in this table) shall govern the use of the MAS Standing Facility. By using the MAS Standing Facility, the Eligible Counterparty (as defined in the Terms and Conditions) is deemed to have agreed to the Terms and Conditions.

Last Modified on 06/07/2018