THE FINANCIAL SECTOR: KEY SUPERVISORY AND REGULATORY INITIATIVES       Content Page Supervision Regulation Risk-based Regulatory Regime Fine-Tuning Regulatory framework Ensuring Sound Market Conduct Innovative Systems for Efficient Payment and Settlement     SUPERVISION   . Enhancing Risk-focused Supervisory Approach . Box 1 – Fostering a Sound and Progressive Financial Services Sector . Enhancing MAS’ Supervisory Capabilities . Box 2 – Stress Testing of Life Insurers . Box 3 – Streamlining Inspection Function . Thematic Inspections to Improve Surveillance   MAS maintains high supervisory standards to foster Singapore’s position as a sound and progressive financial centre. To do this, we continually review and fine-tune our risk-focused supervisory methodologies and capabilities. In April this year, MAS issued a monograph titled “Objectives and Principles of Financial Supervision in Singapore”. The monograph spells out our objectives of supervision, the functions we perform, and the principles that guide our supervisory approach. A key theme of the monograph is that all stakeholders have a shared responsibility to achieve a sound and progressive financial services sector. Box 1 provides a summary of our supervisory objectives and principles.