Monetary Authority of Singapore

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Yale University EliScholar – A Digital Platform for Scholarly Publishing at Yale YPFS Documents (Series 1) Browse by Media Type 10-16-2008 Ministry of Finance (MOF) and Monetary Authority of Singapore (MAS): Joint Press Statement Monetary Authority of Singapore Follow this and additional works at: https://elischolar.library.yale.edu/ypfs-documents Recommended Citation Monetary Authority of Singapore, "Ministry of Finance (MOF) and Monetary Authority of Singapore (MAS): Joint Press Statement" (2008). YPFS Documents (Series 1). 11665. https://elischolar.library.yale.edu/ypfs-documents/11665 This Document is brought to you for free and open access by the Browse by Media Type at EliScholar – A Digital Platform for Scholarly Publishing at Yale. It has been accepted for inclusion in YPFS Documents (Series 1) by an authorized administrator of EliScholar – A Digital Platform for Scholarly Publishing at Yale. For more information, please contact elischolar@yale.edu. A Singapore Government Agency WebsiteWHO WE ARE | CONTACT USHome /  News /  Media Releases /  2008 /  Ministry of Finance (MOF) and Monetary Authority of Singapore... ! " #Media Releases | Published Date: 16 October 2008Ministry of Finance (MOF) and Monetary Authority ofSingapore (MAS)   Joint Press StatementGlobal financial markets have been under severe strain. Banks in developed markets are experiencing significant capitaland liquidity constraints. 2   In Singapore, our financial system remains stable and robust. Financial institutions in Singapore are required by MASto have assets exceeding their liabilities by an appropriate margin. They are also required to abide by stringentregulations on capital, asset quality and risk concentration. MAS’ approach is to emphasise sound regulation andsupervision of financial institutions, so that risks can be identified and addressed at an early stage. Banks and financialinstitutions in Singapore are operating normally, despite the global problems.3   Our domestic Singapore dollar money and foreign exchange market have been calm and banks have been able toobtain funding in the interbank market. Public confidence in Singapore’s markets and financial institutions remainshigh.4   In the last week, several jurisdictions have taken extraordinary measures to stabilise financial markets and restart theflow of credit. In particular, recent plans by the European and US Governments to recapitalise their banking systemsand guarantee bank borrowings in the wholesale markets have improved confidence.5   Singapore has not had to undertake similar extraordinary measures, in view of the continuing stability and orderlyfunctioning of the Singapore banking system.   However, the announcement by a few jurisdictions in the region ofGovernment guarantees for bank deposits has set off a dynamic that puts pressure on other jurisdictions to respond orelse risk disadvantaging and potentially weakening their own financial institutions and financial sectors. This is whyalthough Singapore’s banking system continues to be sound and resilient, the Government has decided to takeprecautionary action to avoid an erosion of banks’ deposit base and ensure a level international playing field for banksin Singapore.6   The Singapore Government has therefore decided to guarantee all Singapore Dollar and foreign currency depositsof individual and non-bank customers in banks, finance companies and merchant banks licensed by the MAS. 7   The guarantee will take immediate effect and will remain in place until 31 December 2010.8   All depositors, big and small, corporates and individuals, including those under the current Deposit InsuranceScheme administered by the Singapore Deposit Insurance Corporation will now enjoy protection from the Governmenton the full amount of their deposits for the duration of the guarantee.  The Government guarantee will also be extendedto deposits placed with credit co-operatives registered with the Registry of Co-operative Societies.9   Given that Singapore’s financial sector is sound and robust, MOF and MAS have assessed that a guarantee of up toS$150 billion will be well in excess of possible liabilities arising from the failure of any financial institutions. Theguarantee will be backed by S$150 billion of the reserves of the Singapore Government. The President has given hisconcurrence for the Government to provide such a guarantee.10   MAS reminds financial institutions that they should not misuse the Government guarantee to take on activitieswithout regard for the risks. In the current challenging environment, financial institutions must continue to heightenvigilance and enhance risk management practices. MAS will continue to closely supervise financial institutions toensure that they operate prudently.***Monetary Authority of SingaporeSubscribe to UpdatesGet notified whenever news and updates are posted on this website. Contact UsReport Vulnerability $ | Privacy Statement | Terms of Use © 2021, Government of Singapore. Last updated on 08 Apr 2019Search www.mas.gov.sg %Regulation Development Monetary Policy Bonds & Bills Currency Publications Statistics News Careers& '

Ministry of Finance (MOF) and Monetary Authority of Singapore (MAS): Joint Press Statement

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Ministry of Finance (MOF) and Monetary Authority of Singapore (MAS): Joint Press Statement

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