Economics
MAS to Enhance Bank Access to Dollar Funding to Improve Liquidity
- New measures are preemptive after virus-induced recession
- Local units of Citigroup and HSBC will also be eligible
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Singapore’s financial regulator said it will introduce measures to enhance banks’ access to local and U.S. dollar funding to protect the city state’s financial sector against the economic fallout of the coronavirus pandemic.
From Sept. 28, the new facility will provide banks and financial firms an additional channel to borrow Singapore dollar funds at longer tenors and will allow lenders to use more forms of collateral, the Monetary Authority of Singapore said in a statement on Thursday. The regulator will also raise the asset encumbrance limit for locally-incorporated banks to 10% of total assets from 4%, it said.