Clause 32

by deleting subsection (1) and substituting the following subsection:“(1) The Authority may, from time to time, by notice in writing to any bank in Singapore, or any class of banks in Singapore, require the bank or banks to maintain minimum cash balances, not exceeding 30% of its or their deposit and other liabilities, on deposit with the Authority as reserves against its or their deposit and other liabilities.”;

by deleting the comma at the end of subsection (2)(b) and substituting a full-stop;

by deleting the words “but the ratios shall be uniform for all banks in Singapore.” in subsection (2);

by inserting, immediately after subsection (2), the following subsection:“(2A) Where the Authority issues a notice under subsection (1) to a class of banks, the Authority may require different banks within the class of banks to maintain different minimum cash balances, having regard to the risks arising from the activities of each bank, the financial soundness of each bank and such other factors as the Authority may consider relevant.”; and

by deleting subsections (7) and (8) and substituting the following subsections:“(7) Any bank which fails to comply with any requirement of the Authority under subsection (1) shall be liable to pay, on being called upon to do so by the Authority, for every day or part thereof of such failure, a financial penalty in accordance with such formula as the Minister may, by order published in the Gazette, prescribe.(8) The Authority may call upon a bank to pay a financial penalty under subsection (7) in addition to any action taken in relation to the bank under subsection (4) or (5).”.