New  Liquidity Coverage Ratio in Singapore

There’s one of MAS measurement that caught my attention! It called “Local Implementation of Basel III Liquidity Rules – Liquidity Coverage Ratio”(New Liquidity Coverage Ratio in Singapore). Very fantasy financial lingo being used on the name! Click here for the detail report @ MAS

Some of the key points from the measurement

– coverage ratio of 100 per cent for Singdollar liquidity  from January next year;

– coverage ratio of 60 per cent on all-currency liquidity from January, with gradual increase of 10 per cent each year to 100 per cent by 2019.

– Foreign banks will need follow the new liquidity requirements too.

With this measurement in place, and banks will be gearing up to meet the requirement by next year. And that is the main reason why banks are promoting Saving ACC/Fixed Desposit with higher than usual interest rate! Good news for us! 🙂 Click here for OCBC 360 plan with higher interest rate!

Looking deeper beyond the higher interest rate, one of the main reason that this measurement caught my attention is that. Singapore Gov has this uncanny ability to predict the World Economy temperate, and to plan and execute the right Economic decision!

Why do i say that, just look at time occurred for the planning, proposal, developing to soft launch of our Resorts World Sentosa and Marina Bay Sands. It look like roadmap in place for the economy down turn. You will get what i mean?

It seem like MAS expect some massive outflow of fund, perhaps back to America since they going to stop their Tapering, and beef up the liquidity reserves for our Banks in Singapore to cushion the impact. To me, it appear like a real bear is lurking around next year. By then is it time to prepare and make ready your CFD account?

Note: I graduated with a IT Degree, and not a Economic Degree, so i will welcome any comment if it my bad on some of the Economic points. Cheers!