Martin Lee @ Sg
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Singapore Government to Guarantee all Deposits

In a joint press statement issued by MAS and Ministry of Finance yesterday night, the Singapore government announced that it would guarantee all Singdollar and foreign currency deposits of individual and non-bank customers in licensed banks, finance companies and merchant banks. 

The guarantee of up to S$150 billion will be more than enough to cover possible liabilities arising from the failure of any financial institution. It takes immediate effect and will remain in place until 31 December 2010.

This announcement came in the light of other countries also providing similar guarantees. Not following in their footsteps might mean an outflow of funds from Singapore banks.

As a sign of how much fear there is in the market right now, my friend told me his mum was frantically telling him that OCBC was collapsing. A rumour triggered no doubt by this announcement.

And I cheekily turned to my friend and said, “Look, here’s another sign that the market is close to a bottom.“

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2 comments
Lyn says 15 years ago

Hi Lion Investor,
I’m a little confused when it says up to $150 bio and our deposits is currently at $700 bio, so does that mean not all deposits will be fully guranteed.
But then I read it says every cents guaranteed? So what is the 150 bio vs the 700 bio comparison

Reply
    lioninvestor says 15 years ago

    Hi Lyn,

    The $150 billion is enough to take the failure of any one financial institution.

    The $700 billion is the total amount of deposits from ALL the FI.

    Reply
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