Singapore legislation

Regulation 3

of Banking (Financial Penalties under Sections 38 and 39) Order 2024

Regulation 3

Financial penalty under section 38 of Act

For the purposes of section 38(7) of the Act, the prescribed formula for the financial penalty (F1) that a bank is liable to pay for every day or part of a day that the bank fails to comply with any liquid assets requirement is —where —

(a)

P is —

(i)

5 — where, during a continuous period of 90 days immediately before the day on which the bank fails to comply with the liquid assets requirement (called in this paragraph the 90‑day period), the bank has complied with all the liquid assets requirements;

(ii)

7 — where the bank has failed on only one occasion during the 90‑day period to comply with any liquid assets requirement; or

(iii)

9 — where the bank has failed on more than one occasion during the 90‑day period to comply with any liquid assets requirement;

(b)

A is the deficiency in the amount of liquid assets necessary for the bank to comply with the liquid assets requirement;

(c)

r is the SORA for —

(i)

the day on which the bank fails to comply with the liquid assets requirement — if that day is a business day; or

(ii)

the last business day immediately before the day on which the bank fails to comply with the liquid assets requirement — if that day is not a business day; and

(d)

m is —

(i)

0.5 —

(A)

in the case where the bank fails to comply with the liquid assets requirement on any business day, but the bank complies with that requirement before the close of its business on that day; or

(B)

in the case where the bank fails to comply with the liquid assets requirement on any day other than a business day, but the bank complies with that requirement by 11.59 p.m. of that day; or

(ii)

1 — in any other case.

Read in full context — Banking (Financial Penalties under Sections 38 and 39) Order 2024 →