Singapore to guarantee all Singdollar, foreign currency
deposits
Posted: 16 October 2008 2015 hrs
SINGAPORE: The Singapore government said it would
guarantee all Singdollar and foreign currency deposits of
individual and non-bank customers in licensed banks, finance
companies and merchant banks.
The Monetary Authority of Singapore and the Ministry of Finance
said the guarantee of up to S$150 billion will be well in excess of
possible liabilities arising from the failure of any financial
institution.
The guarantee takes immediate effect and will remain in place until
31 December 2010. It will also be extended to deposits placed with
credit co-operatives registered with the Registry of Co-operative
Societies.
Currently, there are 41 credit co-operatives providing thrift and
loan services to more than 200,000 members.
The guarantee will be backed by S$150 billion of the reserves of
the Singapore government.
The move follows similar action by governments around the world in
recent days as they sought to deal with the current global
financial crisis.
Singapore has assured that its banking system continues to be sound
and resilient, but it said precautionary action must be taken to
avoid an erosion of the banks' deposit base and to ensure a level
international playing field for banks in Singapore.
The total amount of deposits in Singapore is understood to be
valued at about S$700 billion.
just days ago, it said , it wouldnt. now it saif it will.
since we are so secured why bother to guarantee. they are
sensing money are indeed bleeding from local banks deposits to
somwehere else like HK who had already started guarantee all
deposits.
