MAS Contents

Contents

	HOME

	OUR MISSION

	OUR VISION

A.	INTRODUCTION

	Board of Directors	8
	Chairman's Statement	11
	Board Committees	13
	Management Team	14
	Organisation Chart	15
	Our Achievements and Work in Progress	16

B.	THE FINANCIAL SECTOR: KEY SUPERVISORY AND REGULATORY INITIATIVES

	Supervision	24
	Enhancing Risk-focused Supervisory Approach	24
	Box 1 – Fostering a Sound and Progressive Financial Services Sector	25
	Enhancing MAS' Supervisory Capabilities	26
	Box 2 – Stress Testing of Life Insurers	26
	Box 3 – Streamlining Inspection Function	27
	Thematic Inspections to Improve Surveillance	27
	Thematic Inspections to Improve Surveillance
	Regulation	27

	Risk-based Regulatory Regime	28
	Risk-based Capital for Insurers and Banks	28
	Liquidity Requirement	28
	Box 4 – Being Prepared For Emergencies	29

	Fine-Tuning Regulatory Framework	29
	Amending the SFA and FAA Enhancing Regulations for Investment-linked Policies and Unit Trusts	30
	Consolidating Rules on Credit and Charge Cards	30
	Box 5 – Deposit Insurance Scheme	31
	Risk Management Guidelines	31
	Win-win Partnership with Industry	31
	Divesting Non-financial Businesses	31
	Revised Regulations on Credit Files, Grading and Provisioning	32

	Ensuring Sound Market Conduct	32
	Developing Framework for Composition of Offences	32
	Publishing Unlicenced Operators	32
	Box 6 – Integrated Dispute Resolution Scheme	32
	Improving Corporate Disclosure	33
	Enhancing Management of Insurance Agents	33
	Helping Consumers Better Understand “Critical Year”	33
	Regulatory Frameworks for Business Trusts and Trust Companies	34
	Consulting Industry on CIS	34
	Box 7 – MoneySENSE – Singapore’s Financial Education Programme	35
	Box 8 – Boosting Research	36
	Health Insurance and Changing Demographics	36
	Box 9 – Coping with E-Banking Risks	37

	Innovative Systems for Efficient Payment and Settlement	38
	Global Settlement System for Foreign Exchange	38
	MAS to Launch New Electronic Payment System	38
	Payment Systems Figures	39
	Box 10 – A Speedier, More Efficient Way of Clearing Cheques	39

C.	THE FINANCIAL SECTOR: PERFORMANCE AND GROWTH	41

	Modest Recovery in 2003	42
	Box 11 – MAS’ Financial Surveillance Work	42
	Structure of Financial Sector	43

	Financial Market Activity	43
	Lending in the Domestic Market	43
	Rise in Asian Dollar Market Lending	44
	Box 12 – A Robust Financial System	45
	Deepening Singapore Government Securities Market	46
	Healthy Growth in Corporate Debt Market	47
	Active Trading in Equities and Futures Market	48
	IPO Prospectus Registration and CIS Approval	49
	Vibrant Treasury Market	49
	Box 13 – The Singapore IPO Market	50
	Asset and Wealth Management – Impressive Performance	52
	Mixed Performance for Insurance	53
	Box 14 – Bank Loans to HDB Flat Buyers	54

D.	ECONOMIC DEVELOPMENTS AND MONETARY POLICY	57

	The World Economy: Global Upswing	58
	US: Vibrant Pace	59
	Europe: Mixed	59
	Asia: Broad-based Growth Expected	59
	Box 15 – Debunking the Deflation Myth in Singapore	59
	International Financial Markets: Broad Recovery Amid Uncertainty	60
	Singapore: Riding the Global Recovery	62
	Box 16 – Exchange Rate and Macroeconomic Volatility	65
	Monetary Policy in an Increasingly Volatile Environment	66
	Strengthening the Monetary Policy Formulation Process	66
	Recent Policy Research and Analysis Against the Backdrop of More Frequent Shocks	67
	Box 17 – Creating an Electronics Leading Index	67

E.	MAS IN THE INTERNATIONAL ARENA	69

	Fostering Regional Cooperation and Development	70
	Formulating and Implementing Global Standards	71
	Box 18 – Meetings of Minds	72
	On the Boards of IMF and WB	73
	Box 19 – Singapore to Host IMF and WB Meetings in 2006	73

F.	ORGANISATIONAL INITIATIVES	75

	Corporate Services Department	76
	Creating a Safe and Conducive Work Environment

	Currency Department	76
	Managing Dollars and Cents

	Finance Department	79
	Enhancing Risk Management	79
	Box 20 – Business Continuity Management: Readiness is the Best Protection	80

	General Counsel’s Office	81
	Keeping an Eye on Legal Matters	81

	Human Resource Department	81
	Partnering for Growth	82
	Box 21 – Organisational Priority – Communicating with our People	82

	Information Technology Department	82
	MAS Website Enhanced: eServices Made Easier	82
	IT Systems	82
	Ensuring Integrity and Quality in our IT Infrastructure and Security	83

	Internal Audit Department	83
	Assessing the Control Environment in MAS	83
	Box 22 – Striving Towards Organisational Excellence	83

	Strategic Planning Office	84
	Enhancing our Systems and Structures	84

	Tapping International Expertise	84
	International Advisory Panel	84

G.	FINANCIAL STATEMENTS	87

	MAS FY2003/2004 Financial Statement Highlights	88
	Auditor’s Report	89
	Income and Expenditure Statement	90
	Balance Sheet	91
	Statement of Changes in Equity	92
	Cash Flow Statement	93
	Statement of Backing of Currency in Circulation	94
	Notes to the Accounts	95

H.	CALENDAR OF MONETARY AND FINANCIAL EVENTS	110

I.	KEY ECONOMIC AND FINANCIAL STATISTICS	114

J.	STATISTICAL ANNEX	117

	Monetary Statistics	118
	Financial Structure	122
	Commercial Banks	124
	Finance Companies	129
	Merchant Banks	130
	Insurance Industry	132
	Non-Bank Financial Institutions	133
	Domestic Capital Market	134
	Asian Dollar Market	135

K.	GLOSSARY	138

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