Bear News - Singapore Total Deposits

[Arcachon]

#Dailyupdate

"A major factor causing cooling measures to lose their effect is the continued income and wealth growth of buyers."

You got no money to buy that does not mean all Singaporean and non-Singaporean also got no money to buy.

https://www.ceicdata.com/en/indicato...total-deposits

[Arcachon]

https://www.icompareloan.com/resourc...pore-mortgage/

Bear will never believe you need only 5% because they still believe the property will crash.

[Arcachon]

What is Minimum Cash Balance used for?

For this, MAS mandates the banks operating in Singapore to keep a Minimum Cash Balance (MCB) also known interchangeably as Reserve Ratio or Reserve Requirement or fractional reserve lending.

A deposit received by the bank is a liability to the bank. The bank is liable to pay it back upon demand by the depositor.

In this case, if Gabriel deposits $100,000, then banks in Singapore are required to keep $5,000 as Minimum Cash Balance (MCB).

Banks are able to lend out the $95,000 should it choose to do so.

Of course, banks can also lend out their own equity, but they would not be able to generate an “outsize” return if they only use their own money.

Correction, if you deposit $75,000 in cash or more such as 100 million in cash you get back $75,000 in cash when the Bank runs.

In the event a Deposit Insurance (DI) Scheme member bank or finance company fails, all of your insured deposits with that member are aggregated and insured up to S$75,000 by the Singapore Deposit Insurance Corporation Limited (SDIC). Insured deposits held in trust and client accounts held by non-bank depositors are insured up to S$75,000 per account.

https://www.sdic.org.sg/

Bear with a lot of cash gets to enjoy the $75,000 security free.