1. Liquidity Risk Regulatory Calculations for Monetary Authority of Singapore User Guide
  2. Minimum Liquid Assets Calculation
  3. Pre-configured MAS Regulatory MLA Scenarios
  4. Regulation Addressed through Business Rules

6.3.1 Regulation Addressed through Business Rules

The application supports multiple pre-configured rules and scenarios based on MAS specified scenario parameters such as inflow rates, outflow rates, run-offs, haircuts and so on.

Table 5-2 List of multiple pre-configured rules

Sl. No. Rule Name Rule Description Regulatory Requirement Addressed
Tier 1
1 MAS MLA- Reclassification- Tier 1- Cash, Central Bank Reserves and Bank Notes This rule classifies the liquid assets as Tier 1 where the standard product type are cash, central bank reserves and bank notes. The classification of cash, banknotes and Singapore's central bank reserves as Tier 1 asset is configured as part of this rule.
2 MAS MLA- Reclassification- Tier 1- Debt securities This rule classifies the liquid assets as Tier 1 where the standard product type are debt securities, treasury bills and sukuk. The classification of >=AA- rated debt securities issued by sovereigns or central banks, and sukuk issued by Singapore Sukuk Pte Ltd. as Tier 1 assets is configured as part of this rule.
3 MAS MLA- Reclassification- Tier 1- Debt securities held under reverse repo This rule classifies the liquid assets as Tier 1 where Debt securities held under reverse repo. The classification of >=AA- rated debt securities issued by sovereigns or central banks and sukuk issued by Singapore Sukuk Pte Ltd., which are received as collateral under repurchase agreement as Tier 1 assets is configured as part of this rule.
Tier 2
4 MAS MLA- Reclassification- Tier 2- Debt securities issued by statutory boards This rule classifies the liquid assets as Tier 2 where debt securities issued by statutory boards The classification of debt securities and sukuk issued by statutory boards of Singapore as Tier 2 assets is configured as part of this rule.
5 MAS MLA- Reclassification- Tier 2- Debt securities guaranteed by sovereign, issued by supernationals This rule classifies the liquid assets as Tier 2 where debt securities guaranteed, issued by supernationals. The classification of AAA rated debt securities and sukuk issued by Bank for International Settlements and PSE as Tier 2 assets is configured as part of this rule. Additionally, the classification of AAA rated corporate debt securities that are guaranteed by sovereign, as Tier 2 assets is configured as part of this rule.
6 MAS MLA- Reclassification- Tier 2- Debt securities issued by sovereign or supernationals This rule classifies the liquid assets as Tier 2 where the debt securities are issued by sovereigns or supernationals. The classification of debt securities and sukuk rated AAA to BBB- or short term rated A-1 to A-3, issued by sovereigns, statutory boards, Bank for International Settlements, International Monetary Fund, European Central Bank, European Community and Multilateral Development, as Tier 2 assets is configured as part of this rule.
7 MAS MLA- Reclassification- Tier 2- Corporate debt securities guaranteed by sovereign This rule classifies the liquid assets as Tier 2 where corporate debt securities are guaranteed by sovereign. The classification of debt securities and sukuk rated AAA to BBB- or short term rated A-1 to A-3, having outstanding issue size greater than 200 Singapore dollars, that are guaranteed by sovereign, as Tier 2 assets is configured as part of this rule.
8 MAS MLA- Reclassification- Tier 2- Debt securities issued by banks and other corporate This rule classifies the liquid assets as Tier 2 where debt securities are issued by banks and corporates. The classification of debt securities and sukuk rated AAA to BBB- or short term rated A-1 to A-3, issued by banks, having outstanding issue size greater than 200 Singapore dollars, as Tier 2 assets is configured as part of this rule.
9 MAS MLA- Reclassification- Tier 2- Bills of Exchange This rule classifies the liquid assets as Tier 2, which are issued by bills of exchange. The classification of bills purchase and discounted and bills receivable as Tier 2 assets is configured as part of this rule.
Qualifying Liabilities
10 MAS MLA- Reclassification- Qualifying Liabilities- Issued bills of exchange This Rule classifies the Qualifying Liabilities - Issued by bills of exchange. The classification of bills of exchange issued by bank as qualifying liabilities assets under MLA regime is configured as part of this rule.
11 MAS MLA- Reclassification- Qualifying Liabilities- Issued bills of exchange- Overdue This Rule classifies the Qualifying Liabilities- Issued by bills of exchange which has overdue in bills of exchange. The classification of bills of exchange issued by bank that are overdue and are rolled-over, as qualifying liabilities under MLA regime is configured as part of this rule.
12 LRM - MLA Qualifying Liabilities -All Liabilities Except central bank and banks This rule classifies the qualifying liabilities for all liabilities except central bank and banks The classification of all the liabilities other than dues to central banks and banks, as qualifying liabilities under MLA regime is configured as part of this rule.
13 LRM - MLA Qualifying Liabilities -All assets Except Bills of Exchange This rule classifies the qualifying liabilities for all assets except bills of exchange The classification of all the assets due to central banks and banks on a gross basis is configured as part of this rule.
14 LRM - MLA Qualifying Liabilities -Central bank and banks This rule classifies the qualifying liabilities for central bank and banks The classification of all the liabilities due to central banks and banks on a net basis i.e. after subtracting any claims on central bank and bank respectively, as qualifying liabilities under MLA regime is configured as part of this rule.
15 LRM - MLA Qualifying Liabilities -Line of Credit, LC and SVF This rule classifies the qualifying liabilities for line of credit, LC and SVF The classification of lines of credit and letters of credit that are irrevocable, as qualifying liabilities under MLA regime is configured as part of this rule. Additionally, liabilities of the bank arising from stored value facilities is also configured as part of this rule.
16 MAS MLA-Value to be included in the Stock of Liquid Asset This rule updates the stock of liquid asset in the FSI_LRM_INSTRUMENT table The computation of the value of the total stock of eligible liquid asset is configured as part of this rule.
17 MAS MLA-Mitigant Value to be included in the Stock of Liquid Asset This rule updates the mitigant value to be included in stock of liquid assets in the FSI_LRM_INSTRUMENT table The identification and computation of the value of the non-rehypothecated portion of liquid asset collateral received under re-hypothecation rights are configured as part of this rule.