MAS issues Guidelines on Liquidity Risk Management for banks, merchant banks, and finance companies

30 July 2026

On 10 July 2026, the Monetary Authority of Singapore (“MAS”) published the Guidelines on Liquidity Risk Management (Banks) (“Guidelines”). The Guidelines apply to banks, merchant banks, and finance companies in Singapore (collectively, “Banks”).

The Guidelines provide greater clarity on MAS’ supervisory expectations on the management of liquidity risk by Banks. They are based on the Principles for Sound Liquidity Risk Management and Supervision issued by the Basel Committee on Banking Supervision and consolidate supervisory expectations that MAS has communicated through past reviews and supervisory engagements.

As liquidity stresses can materialise at short notice, Banks need to maintain appropriate buffers and establish robust processes to respond quickly to liquidity stresses. The Guidelines elaborate on MAS’ expectations for Banks’ governance frameworks and risk management processes, including the need for robust liquidity stress testing and operationally ready contingency funding plans. The Guidelines also set out good practices observed across the banking sector to serve as additional references.

Banks should apply the Guidelines in a manner commensurate with the nature, size, and complexity of their activities.

The Guidelines will come into effect on 10 July 2027.

Background

MAS published a consultation paper on a draft version of the Guidelines on 29 August 2025. In its response to feedback published on 10 July 2026, MAS said that it carefully considered the feedback received and incorporated it, as appropriate, in finalising the Guidelines.

Reference materials

The following materials are available on the MAS website www.mas.gov.sg:

• Guidelines on Liquidity Risk Management (Banks)
• Response to Feedback Received on Guidelines on Liquidity Risk Management Banks