Singapore legislation

Clause 36

Minimum asset requirement

(1)

The Commissioner may require banks to maintain a minimum amount or amounts of assets specified in subsection (2) of this section to be held by banks in Singapore expressed as a percentage or percentages which such assets shall bear to the sight, savings account, time and other liabilities of each bank either jointly or separately.

(2)

For the purposes of subsection (1) of this section, the specified assets shall be —

(a)

the assets specified in paragraphs (a) to (f) of subsection (6) of section 34 of this Act;

(b)

loans or advances made to persons in Singapore;

(c)

securities issued by the Government, or by any public authority established by any law, and any other securities issued in Singapore and approved for the purposes of this section by the Commissioner; and

(d)

other assets in Singapore which may be approved by the Commissioner for the purposes of this section.

(3)

Any bank which fails to comply with any of the requirements of the Commissioner under the provisions of subsection (1) of this section shall be guilty of an offence under this Act and shall be liable on conviction to a fine not exceeding five thousand dollars and in the case of a continuing offence to a further fine of one thousand dollars for every day during which the offence continues after conviction.

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