Monetary Authority of Singapore Annual Report 2010/2011
Our Work


Enhancing the Standing Facility

In 2010, the AAA framework was enhanced with the list of issuers extended to AAA-rated zero risk-weighted public sector entities. The AAA framework, established in 2009, allowed AAA-rated Singapore dollar debt securities issued by supranationals, sovereigns and sovereign-guaranteed companies to be accepted at the MAS Standing Facility. These securities were also eligible as liquid assets under Notice 613 with the same haircut as Singapore Government Securities (SGS).

MAS' ability to provide S$ liquidity to banks operating in Singapore was further enhanced through expanding the network of cross-border collateral arrangements (CBCAs) established with other central banks. To date, MAS has announced the conclusion of CBCAs with Bank of England, Banque de France, Bundesbank and De Nederlandsche Bank, allowing commercial banks to pledge Euros, British Pounds as well as eligible government securities to obtain S$ liquidity at the Standing Facility. Aside from improving the resilience of the local money market, CBCAs could serve an additional purpose of improving mutual recognition of SGS as acceptable collateral in other central banks' liquidity operations.