S'pore banks need to maintain NSFR ratio of 100% over long term from 2018

Singapore

SINGAPORE'S three biggest banks will be required to prioritise long-term funding from next year to ensure they will be stable in extended periods of market stress.

The Monetary Authority of Singapore (MAS) issued Notice 652 on July 10, which will require DBS Bank, OCBC Bank and United Overseas Bank to maintain a net stable funding ratio of 100 per cent from January 1, 2018. The NSFR, a key reform announced by the Basel Committee on Banking Supervision in January 2014, measures a bank's long-term resources over 12 months of liquidity requirements.