Singapore government to guarantee banks
Thursday, 16th October 2008
Singapore government sets aside SGD $150 billion to guarantee all Singdollar and foreign currency deposits of individual & non-bank customers in licensed banks, finance companies and credit co-operatives. For the guarantee to be called, two things have to happen: a bank has to fail, and at the same time its assets must be worth so little there is not even enough to repay its depositors. Singapore government 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.