6.2.1 Identification and Treatment of Qualifying Liabilities

Qualifying liabilities are defined as liabilities which qualify to be fully included as part of the liabilities while computing Minimum Liquid Assets (MLA). Following are included under qualifying liabilities:

1. All liabilities, except bills of exchange, lines of credit, letters of credit and stored value facilities, from customers, other than banks and central banks.
2. All liabilities, except bills of exchange, lines of credit, letters of credit and stored value facilities, from central banks.
3. All liabilities, except bills of exchange, lines of credit, letters of credit and stored value facilities, from banks.
4. Lines of credit and letters of credit that are irrevocable.
5. Liabilities of the bank arising from stored value facilities.
6. Liabilities from bills of exchange meeting any of the below mentioned criteria:

• Are trade transactions between Singapore domiciled parties
• Are used for services
• Are switch transactions between non-Singapore domiciled parties, financed locally after the switch
• Are overdue and substituted by roll-over
• Are used for import and financed by the seller
• Where invoice is already settled, but has not been produced before the legal entity

100 % of the value of qualifying liabilities is included in the stock of qualifying liabilities.