SINGAPORE SEEKS COMMENTS ON LIQUIDITY RISK

UNCLAS SINGAPORE 001714 SIPDIS SIPDIS E.O. 12958: N/A TAGS: EFIN ECON EINV ETRD SN SUBJECT: SINGAPORE SEEKS COMMENTS ON LIQUIDITY RISK MANAGEMENT GUIDELINES ¶1. The Monetary Authority of Singapore (MAS) recently released for public comment guidelines to revise the liquidity risk framework for banks. Existing regulations, in place since 2001 (under MAS Notice 613),allow banks to adopt either a "general methodology" or a "risk-sensitive methodology," depending on the scope of their operations. MAS asserts that its proposals are designed to enhance banks' overall risk management by implementing changes to its minimum regulatory liquidity requirements, including an expanded range of eligible liquid assets. ¶2. The closing date for submission of comments is June 30, ¶2006. The MAS consultation paper is available at http://www.mas.gov.sg/masmcm/upload/mm/MM_4B9 A5DC7_D606 _F5E9_67E3AEA6B42FE082__4B9A5DD7_D606_F5E9_62 AB2D8C42BC 7F9A/ConsultationPaperMAS613.pdf Comments may be submitted by email to liquidity@mas.gov.sg or mailed to: Specialist Risk Supervision Department Monetary Authority of Singapore 10 Shenton Way MAS Building Singapore 079117 Any inquiries may be directed to: Gim Hoe Lim (ghlim@mas.gov.sg) or Justina Lew (justinalew@mas.gov.sg). HERBOLD