THE FINANCIAL SECTOR: KEY SUPERVISORY AND REGULATORY INITIATIVES       Content Page Supervision Regulation Risk-based Regulatory Regime Fine-Tuning Regulatory framework Ensuring Sound Market Conduct Innovative Systems for Efficient Payment and Settlement     RISK-BASED REGULATORY REGIME   . Risk-based Capital for Insurers and Banks . Liquidity Requirement . Box 4 – Being Prepared For Emergencies   Liquidity Requirement   Last year, MAS continued the assessments of banks under the Liquidity Supervision Framework (LSF) introduced in 2001, with more banks qualifying for liquidity relief under the framework. The LSF is a move away from a “one-size-fits-all” 18% statutory Minimum Liquid Assets requirement to one that is based on an individual bank’s liquidity risk profile and risk management capabilities.