MAS has powers to provide Emergency Liquidity Assistance (ELA) under section 26 of the MAS Act (Cap 186). It allows MAS to make any loan or advance to a financial institution (FI) where MAS deems it necessary to safeguard the stability of, or public confidence in, the financial system.
The ELA monograph (1 MB)aims to provide information to FIs on an ex-ante basis to support planning for liquidity stress and crisis management. Greater clarity on the ELA framework can complement recovery and resolution planning, as well as prudential policies, in enhancing financial stability. Increased transparency on the parameters for the extension of ELA, such as eligibility criteria on liquidity access and collateral policy, will also enable eligible FIs to put in place operational processes to access ELA. This will improve the overall effectiveness and efficiency of ELA provision during times of stress.
An indicative list of eligible collateral that MAS will accept for ELA can be found in the table below.
1 This excludes covered bonds and self-issued debt securities.
2 Please refer to the MAS Standing Facility website for the list of currencies and government securities that can be accepted under cross-border collateral arrangements.