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Computation of asset maintenance ratio

Deposit Insurance and Policy Owners’ Protection Schemes (Deposit Insurance) Regulations 2011

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—(1) For the purposes of regulation 4(2) and subject to paragraphs (2), (3) and (4), the asset maintenance ratio is calculated in accordance with the formula:where —(a)A is the value of any eligible asset or eligible pledged asset which —(i)is reflected as an asset in the books of the DI Scheme member in relation to its operations in Singapore;(ii)is free from any prior encumbrances;(iii)does not arise or result from any contractual or other arrangement with, or investment in, a counterparty related to the DI Scheme member; and(iv)is not used to meet any requirements in relation to minimum liquid assets or minimum cash balances;(b)B is the percentage applicable to a particular eligible asset or an eligible pledged asset specified in the second column of the First Schedule or Second Schedule, as the case may be; and(c)C is —(i)for the period between 1 April 2024 and 31 December 2024 (both dates inclusive), the aggregate of the following amounts of every insured depositor of the DI Scheme member as at 31 December 2023:(A)the aggregate of the amounts, not exceeding $100,000, of insured deposits placed with the DI Scheme member which —(AA)are held by the insured depositor in its or his own right;(AB)are held by the insured depositor in its or his own right jointly with one or more persons in a joint account;(AC)where the insured depositor is a sole-proprietor, are held in the name of the sole-proprietorship; and(AD)consist of moneys denominated in Singapore dollars placed with the DI Scheme member under the Supplementary Retirement Scheme;(B)the amount, not exceeding $100,000, of insured deposits held by the insured depositor as a trustee under a trust in every account opened with the DI Scheme member;(C)the amount, not exceeding $100,000, of insured deposits held by the insured depositor in every client account opened with the DI Scheme member;(D)any moneys denominated in Singapore dollars placed by the insured depositor with the DI Scheme member under the CPFIS and CPFRS, not exceeding $100,000;(ii)where the foreign bank becomes a DI Scheme member during the course of a premium year or an exemption from the requirement to be a DI Scheme member granted to the foreign bank is withdrawn during the course of a premium year, the insured deposit base as at the date on which the foreign bank became a DI Scheme member; or(iii)in any other case, the insured deposit base of the DI Scheme member as at 31 December of the preceding year.(1A) For the purposes of paragraph (1)(c)(i) —(a)a reference to an insured deposit includes a reference to a part of the insured deposit;(b)where an insured depositor holds an insured deposit in its or his own right jointly with one or more persons in a joint account, each of them, whether or not it or he is an insured depositor, is deemed to have an equal share in the insured deposit unless there is an express provision to the contrary in the books of the DI Scheme member; and(c)where there are 2 or more insured depositors holding any insured deposit in an account under a trust or a client account jointly, each of them is deemed to have an equal interest in the insured deposit.(2) For the purposes of paragraph (1), the value of an eligible asset or eligible pledged asset shall be determined in the following manner:(a)the value of an eligible asset shall be its carrying value;(b)the value of an eligible pledged asset shall be its market value.(3) For the purposes of paragraph (1), the DI Scheme member may include in the value of A, the value of an eligible asset against which a deposit has been pledged, charged or secured as collateral.(4) For the purposes of paragraph (1), an eligible pledged asset shall comprise any of the following types of assets, in respect of which the DI Scheme member has granted, on such terms and conditions as may be agreed with the Agency, a security interest, other than a contingent security interest, in favour of the DI Fund:(a)any Singapore dollar note or coin kept in Singapore;(b)any Singapore Government Securities or debt security issued by a statutory body in Singapore (including the Authority) and guaranteed by the Government;(c)any deposit placed with the Authority, after deducting any moneys due to the Authority;(d)any debenture or debt security issued by Singapore Sukuk Pte. Ltd.;(e)any debt security issued by a statutory body in Singapore (including the Authority) which is not guaranteed by the Government;(f)any debt security (other than that of a banking corporation or merchant bank) which has a long-term rating of investment grade;(g)any shares listed on a securities exchange and issued by a company (other than a banking corporation, a merchant bank or a counterparty related to the DI Scheme member) incorporated in Singapore; and(h)such shares listed on a securities exchange and issued by a company (other than a banking corporation, a merchant bank or a counterparty related to the DI Scheme member) established or incorporated outside Singapore as may be permitted by the Authority for inclusion in the computation of the asset maintenance ratio.(5) For the purposes of paragraph (4), where the Agency appoints an advocate and solicitor to act on its behalf in any particular transaction with a DI Scheme member to create a security interest over an eligible pledged asset, the Agency shall be entitled to claim costs on a full indemnity basis for the appointment of the advocate and solicitor from that DI Scheme member.

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