PwC's Managing upstream risk: Regulatory reform review - An asian perspective August 2013 | Page 9

Singapore
On 16 August 2013 MAS issued the consultation paper “Local Implementation of Basel III Liquidity Rules – Liquidity Coverage Ratio”, proposing draft rules for the implementation of LCR in Singapore as part of the Basel III accord. Key proposals as documented in the paper are: Aggregated country level versus Entity level • Imposing an individual LCR requirement on an entity level for FIs in Singapore given that most of the individual entities have different liquidity profiles, separate liquidity management policies and liquid assets management frameworks. • Imposing a collective LCR requirement on an aggregated country level where the related entities in Singapore can justify and demonstrate that their liquidity needs are managed on a country level basis.

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Varying LCR requirement for foreign bank branches under certain conditions • Prepared to vary the LCR requirement for foreign bank branches under certain conditions as MAS noted industry feedback that maintaining liquid assets by foreign bank branches at each location to meet the LCR requirement is inefficient for liquidity risk management at the group.

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LCR by currency • SGD LCR requirement of 100% • USD LCR requirement of 80%

The report also covered the definition of HQLAs, treatment of minimum cash balances, trade finance, intra-group flow, as well as provided a timeline for the LCR implementation starting 1 January 2015 and completely compliant by 1 January 2019.

Banking | Regulatory Reform Review

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