Singapore, Japan establish cross-border collateral deal

To enhance financial stability in Singapore.

Under the agreement between the Bank of Japan and the Monetary Authority of Singapore, eligible financial institutions operating in Singapore may obtain Singapore Dollar liquidity from MAS by pledging Japanese government securities with MAS.

This widens the range of acceptable collateral in MAS’ liquidity facility, and permits greater flexibility in the liquidity management of eligible financial institutions, including Japanese banks, operating in Singapore.

This collaboration also reinforces the commitment by BOJ and MAS’ to support the economic and financial relationship between Japan and Singapore.

Details of the arrangement will be made public later when the necessary preparations are completed.