Singapore legislation
Clause 34
of Banking Bill
Clause 34
Minimum liquid assets
(1)
The Commissioner may, from time to time, prescribe by notice in writing a minimum amount or amounts of liquid assets to be held by banks.
(2)
The minimum amount or amounts of the assets so prescribed to be held shall be expressed in the form of 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, and such percentage or percentages may be varied by the Commissioner by notice in writing.
(3)
Whenever the Commissioner issues a notice under subsection (1) of this section, each bank shall be allowed such uniform period of grace, being not less than one month, as may be specified in such notice, in which to comply with the provisions thereof.
(4)
A bank shall not, during any period in which it has failed to comply with any notice under subsection (1) of this section, without the approval of the Commissioner, grant further advances to any person.
(5)
For the purpose of computing the minimum amount or amounts of liquid assets under this section and specified assets under section 36 of this Act, and the sight, savings account, time and other liabilities of a bank carrying on business in Singapore and elsewhere, the offices and branches of such bank in Singapore shall be deemed to constitute a separate bank carrying on business in Singapore.
(6)
For the purposes of this section liquid assets shall be —
notes and coin which are legal tender in Singapore;
balances with the Accountant-General;
balances with banks in Singapore, after deducting therefrom balances held for banks in Singapore;
net money at call in Singapore;
Treasury bills issued by the Government and maturing within three months (exclusive of days of grace); and
such other assets as the Commissioner may from time to time approve.
(7)
The Commissioner may by notice in writing require each bank to render such returns as the Commissioner deems necessary for the implementation of this section.
(8)
Any bank which fails to comply with any of the provisions of this section shall be liable to pay, on being called upon to do so by the Commissioner, a penalty interest charge of not more than one-tenth of one per centum of the amount of the deficiency for every day during which the deficiency continues.
(9)
Any bank that fails or refuses to pay a penalty interest charge under subsection (8) of this section shall be guilty of an offence under this Act.