TITLE: Singapore's Monetary Authority Updates Merchant Bank Liquidity Requirements BODY: On May 28, 2026, the Monetary Authority of Singapore (MAS) issued amendments to Notice 1015, which sets out minimum liquid assets (MLA) and liquidity coverage ratio (LCR) requirements for merchant banks operating in Singapore. The notice applies to all locally incorporated merchant banks and merchant bank branches in the jurisdiction. Notice 1015 establishes liquidity risk management standards that merchant banks must comply with under sections 55ZG(1) and 65A(2) of the Banking Act 1970. The MLA framework requires merchant banks to maintain a minimum level of highly liquid assets to manage short-term funding pressures, while the LCR framework ensures merchant banks can survive acute stress scenarios by maintaining sufficient high-quality liquid assets to cover net cash outflows over a 30-day period. The amendments issued on May 28, 2026 refine these requirements and update the associated reporting forms that merchant banks must use to demonstrate compliance. The amended notice and updated reporting forms—MAS Notice 1015 (Amendment) 2026 and MAS Notice 1015 Form 2 (Amendment) 2026—take effect on September 1, 2026. Merchant banks must ensure their liquidity management frameworks and reporting procedures align with the revised requirements by this date. The notice provides two reporting forms: Form 1 for reporting assets and liabilities by currency and top depositors, and Form 2 for reporting LCR, MLA, cashflows, and available unencumbered liquid assets. Merchant banks should review the amended notice and forms to understand any changes to their compliance obligations and adjust their systems and processes accordingly ahead of the September 1, 2026 effective date.

Notice 1015 Minimum Liquid Assets and Liquidity Coverage Ratio

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