MAS Standing Facility     

MAS operates a Standing Facility, which is our central liquidity facility for Real Time Gross Settlement (RTGS)-participating banks.  Essentially a two-sided discount window, the Standing Facility is available to allow MEPS+ participating banks to initiate Singapore dollar deposit or swap for Singapore dollar (using eligible foreign currencies) or borrow Singapore dollar (via repo of eligible collateral) from MAS on an overnight and interest-paying basis.  The PSA-ISMA Global Master Repurchase Agreement must be entered into with MAS before banks may borrow S$ funds via eligible collateral repo from MAS.  The individual borrowing (deposit) transactions have the effect of increasing (decreasing) the aggregate amount of liquidity in the banking system.

The interest rate at which banks may borrow from the facility will be the reference rate plus 50 basis points, and the rate at which banks may deposit with the facility will be the reference rate minus 50 basis points.  The reference rate is derived as the weighted average of successful bids for MAS' S$500m overnight clean borrowing or loan conducted during Money Market Operations on the same day.  Details of the operation of the Standing Facility, including operating windows applicable for each eligible collateral, may be found in the Terms and Conditions.

Terms and Conditions with effect from 13 April 2011 (PDF, 112KB)