Singapore�s c.Bank sets up S$20 bln facility to back up depositors
Daily Excelsior
07:33 PM Jul 26, 2012 IST
SINGAPORE, July 25:Singapore�s central bank announced fresh measures to protect depositors in the city-state, creating a liquidity buffer of S$20 billion ($15.87 billion) to back up a deposit insurance scheme in the case of a banking crisis.The Monetary Authority of Singapore (MAS) said in its annual report it had on Feb 9 agreed to provide the Singapore Deposit Insurance Corp Ltd with a contingent liquidity facility of up to S$20 billion �in the event a deposit insurance scheme fails and liquidity is needed for compensation payments to insured depositors�.�For the financial year ended March 31, 2012, there were no request and drawdown on the facility.�The insurance scheme currently protects deposits of up to S$50,000 with a bank, an amount increased 2.5 times two years ago following the 2008 financial crisis.Recently the central bank also announced that retail-orientated foreign banks, which have large operations in Singapore, will be required to set up local legal entities aimed at protecting depositors.Singapore�s central bank in 2008 joined other central banks in the region by guaranteeing all bank deposits for a period of two years.(agencies)�
Advertisement
