Singapore legislation

Clause 24

Minimum holdings of liquid assets by finance companies

(1)

Every finance company shall maintain a minimum holding of liquid assets, as defined in subsection (4) of this section but a period of six months after the date of the coming into operation of this Act shall be allowed for compliance with this requirement.

(2)

The minimum amount of liquid assets to be maintained by finance companies shall be determined from time to time by the Commissioner and shall be expressed as a percentage of the liabilities of each finance company on account of deposits.

(3)

The Commissioner shall prescribe the method of computing the amount of liquid assets to be held by finance companies.

(4)

For the purposes of this section “liquid assets” means all or any of the following: —

(a)

notes and coins that are legal tender in Singapore;

(b)

net balances at banks in Singapore;

(c)

net money at call in Singapore;

(d)

Singapore Treasury bills;

(e)

other assets that the Commissioner, with the approval of the Minister, may prescribe.

(5)

Any finance company that fails to comply with any requirement of this section shall be liable, on being called upon to do so by the Commissioner (in addition to any other penalty that may be imposed under this Act) to pay a penalty interest charge not exceeding one-fifteenth of one per centum of the amount of the deficiency for every day during which the default continues and shall not while the default continues accept any deposits without the approval of the Commissioner.

Read in full context — Finance Companies Bill →