reflect their systemic importance in our economy and financial system. there is no global capital standard for the insurance industry. this is a lacuna that needs to be plugged. but the international association of insurance supervisors ( “ iais ” ) has taken the lead to formulate standards for a risk - based solvency regime for insurers. the eu has built on this to develop detailed capital standards known as solvency ii. many jurisdictions are reviewing their rules with the intent to align with iais standards. bis central bankers ’ speeches singapore was among the first jurisdictions in asia to introduce a risk - based capital ( “ rbc ” ) framework for insurers, in 2005. in 2012, mas embarked on a review to enhance the framework, known as “ rbc 2 ”, to take into account the new iais standards and best practices, including relevant aspects of solvency ii. mas will be conducting a quantitative study to assess the impact on the insurance industry of the proposals under rbc 2. there are no global capital standards for capital markets services providers. the international organisation of securities commission ( “ iosco ” ) has, however, set out principles for the solvency of securities market intermediaries. based on these principles, mas has implemented a risk - based capital framework for capital markets services licensees. strengthening liquidity buffers the second important area of reform is setting – for the first time – international standards for bank liquidity. banks are in the business of transforming short - term liabilities ( mainly deposits ) into long - term assets ( mainly loans ). this fundamental mis - match in maturity opens banks to the risk that they may not be able to finance short - term liabilities as they fall due. even solvent banks with lots of capital can fail if liquidity risks are not well - managed. the new liquidity coverage ratio ( “ lcr ” ) sets the global minimum standard for bank liquidity. essentially, the lcr framework requires banks to have an adequate stock of high quality liquid assets that can be converted into cash to survive a 30 - day period of stress. in singapore we have had liquidity rules for a long time. our risk - based minimum liquid assets framework requires every bank to hold a minimum percentage of its qualifying liabilities in liquid assets. we are now looking to adopt the basel iii lcr rules, with some enhancements to suit domestic conditions. • although basel iii applies the lcr framework only to internationally active banks, we propose to extend

, mas also started publishing, on a daily basis, compounded sora rates for 1 - month, 3 - month and 6 - month tenors, and a sora index. 7 these provide market participants with a standardised and simplified way of obtaining compounded rates for any given tenor, and can easily be referenced in new sora products of different maturities, to suit the needs of different customers. third, to provide a market - based pricing reference for sora cash products, and spur hedging activities through the sora derivatives market, mas has broadened our suite of money market instruments by issuing floating rate notes based on sora ( mas sora frn ). we are encouraged that the first two mas sora frn auctions were met with strong market demand. fourth, to facilitate price discovery in a nascent sora derivatives market, mas established in june, a daily auction process for sora overnight indexed swaps ( or ois ) and sor - sora basis swaps up to 5 - years in tenor. these are the key instruments for developing the sora derivatives market and for facilitating a transition from sor derivatives. going forward, mas will extend the auction tenors, and make available this process to the wider interdealer market. 11 but mas ’ efforts alone are not enough to achieve a successful transition from sor to sora. the financial industry and its stakeholders have a critical role to play, given that you are the ultimate end - users. 12 to this end, mas established the industry - led steering committee on sor transition to sora or sc - sts, in august last year, chaired by mr samuel tsien ( group ceo of ocbc and abs chairman ). the sc - sts provides strategic direction on developing new sora - based products and markets, and serves as the key coordinating platform to engage relevant 3 / 7 bis central bankers'speeches stakeholders in support of a smooth transition. since its formation, the sc - sts and its various sub - groups have made significant progress in laying the foundation to support benchmark transition by – establishing market conventions and infrastructure, building liquidity in the sora derivatives market, conducting pilot test trades in sora loans and bonds, and engaging market participants and end - customers on the transition. 13 i would like to thank samuel and the sub - group leads for their strong and able leadership, and the great work done thus far. samuel will be sharing more on the sc -