Singapore legislation
Regulation 4
of Banking (Financial Penalties under Sections 38 and 39) Order 2024
Regulation 4
Financial penalty under section 39 of Act
Subregulation 1
For the purposes of section 39(7) of the Act, the prescribed formula for the financial penalty (F2) that a bank is liable to pay for every day or part of a day that the bank fails to maintain the daily minimum cash balance is —where —
B is the deficiency in the amount of cash balance necessary for the bank to maintain the daily minimum cash balance; and
r is 3 percentage points above the SORA for —
the day on which the bank fails to maintain the daily minimum cash balance — if that day is a business day; or
the last business day immediately before the day on which the bank fails to maintain the daily minimum cash balance — if that day is not a business day.
Subregulation 2
For the purposes of section 39(7) of the Act, the prescribed formula for the financial penalty (F3) that a bank is liable to pay for every day or part of a day that the bank fails to maintain the average minimum cash balance, over any 2‑week period specified by the Authority starting on or after 26 December 2024, is —where —
C is the deficiency in the amount of cash balance necessary for the bank to maintain the average minimum cash balance; and
r is 3 percentage points above the highest SORA for a day during the 2‑week period.