Notice 806 Minimum Cash Balances and Minimum Liquid Assets

Notices

Last Revised Date: 13 April 2011

Notice 806 Minimum Cash Balances and Minimum Liquid Assets

Requirements for all finance companies on the minimum cash balance and minimum liquid assets.

Liquidity Risk

Issued pursuant to:

Finance Companies Act (Cap. 108) section 31 (1) (f) and section 32 (2)

Applies to:

Finance Company

View Notice

Notice 806 Minimum Cash Balances and Minimum Liquid Assets

(25.9 KB)

This notice applies to all finance companies. It sets out the requirements on the minimum cash balance and minimum liquid assets.

13 Apr 2011 MAS Notice 806 (Amendment) 2011 takes effect.

28 Sep 2006 MAS Notice 806 (Amendment) 2006 takes effect.

09 May 2000 MAS Notice 806 is modified to the extent stated in Circular FSG 16/2000

07 May 1999 MAS Notice 806 is modified to the extent stated in Circular FSG 15/99 (748.1 KB) .

14 Apr 1998 MAS Notice 806 is modified to the extent stated in Circular FSG 33/98 .

20 Apr 1987 Notice to Finance Companies MAS 806 dated 1 December 1983 is cancelled.

Appendix I: Composition of Liabilities Base (44.7 KB)

Appendix II: Guidelines for the Computation of Minimum Cash Balance (12 KB)

Annex I of Appendix II (12.1 KB)

Appendix III: Guidelines for the Computation of Minimum Liquid Assets (10.6 KB)

Annex II of Appendix III (9.94 KB)

This notification sets out the reserves to be maintained by a finance company with MAS.

Sets out the treatment of Singapore Government Securities (SGS) held by finance companies under reverse repurchase agreements for the purposes of minimum cash balances (MCB) and minimum liquid assets (MLA) requirements.

Sets out the change in the liabilities base for the maintenance of finance companies' minimum liquid assets (MLA) from the daily eligible liabilities to the average of finance companies' eligible liabilities during a two-week period.

Sets out the change in minimum cash balance (MCB), minimum liquid assets (MLA), and composition of liquid assets.