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DBS Bank Annual Report 1998

Performance at a Glance

Financial Highlights

Letter to Shareholders

Corporate Governance

Operations Review

Financial Report



Corporate Governance

Managing Specific Risks - Liquidity Risk

Managing liquidity risk 

The Bank seeks to manage its liquidity risk across all classes of assets and liabilities to ensure that even under adverse conditions, DBS has access to funds at a reasonable cost. Ultimate responsibility for DBS' global liquidity management lies with the Bank's Asset-Liability Committee. Tapping available sources of liquidity, preserving necessary funding capacity, and continuous contingency planning are essential ingredients to managing DBS' liquidity risk. Liquidity targets are maintained to ensure that even under adverse conditions, funds are available to cover customer needs, maturing liabilities, and other funding requirements.

Organisation Structure
Y2K DBS Initiative
Best Practices Guide
Managing Specific Risks

Market Risk
Credit Risk
Liquidity Risk
Operational Risk

Sources of liquidity 

Deposits represent DBS' principal source of funds. Our well-diversified retail deposit base represents a large portion of our funding, but a growing level of deposits has been raised from corporate and institutional clients. DBS may raise funds locally or globally through a variety of instruments, including repurchase agreements and capital securities. Other sources of funding are explored on an ongoing basis eg. the issuance of commercial paper and other debt instruments as well as asset securitisation.

Importance of stress testing 

On a weekly basis, we perform stress tests on our liquidity profile to evaluate the accuracy of our projections and our ability to raise funds, even under adverse circumstances.