ANCHOR OF ECONOMIC
AND FINANCIAL STABILITY
- MANAGEMENT OF LIQUIDITY
- Enhancing MAS' Standing Facility
- Renewal of the MAS-People's Bank of China Currency Swap
MANAGEMENT OF LIQUIDITY
ENHANCING MAS' STANDING FACILITY
As part of ongoing efforts to enhance MAS' liquidity facilities, the range of acceptable collateral at MAS' Standing Facility was further expanded in May 2015 to include Singapore statutory board debt securities and Japanese Yen cash under the MASBOJ cross-border collateral arrangement (CBCA).
Singapore Statutory Board Debt Securities
With the inclusion of SGD debt securities issued by Singapore statutory boards as eligible collateral for MAS' Standing Facility, banks can now hold a broader pool of high quality SGD assets to meet their liquidity needs in times of stress.
Japanese Yen Cash Under MAS-BOJ CBCA
MAS enhanced the MAS-BOJ CBCA to allow banks in Singapore to pledge Japanese Yen cash at MAS' Standing Facility to obtain SGD liquidity. This is in addition to the Japanese Government Bonds and Japanese Treasury Discount Bills that are already accepted under the CBCA. This collaboration reinforces the commitment of MAS and BOJ to support the long-standing economic and financial relationship between Singapore and Japan.