MAS: Annual report 2006 / 2007
	CONTENTS HOME   ENTERPRISE: Our Role BUILDING ON A ROBUST MACROECONOMIC ENVIRONMENT DEVELOPMENTS IN THE SINGAPORE SECURITIES MARKET FOSTERING A SOUND & REPUTABLE FINANCIAL CENTRE RISK MANAGEMENT & INFRASTRUCTURE GROWING SINGAPORE AS AN INTERNATIONALLY COMPETITIVE FINANCIAL CENTRE CURRENCY ORGANISATIONAL INITIATIVES		FOSTERING A SOUND & REPUTABLE FINANCIAL CENTRE 25 Changes to Capital Requirements for Singapore-incorporated Banks 25 Enhancing MAS’ Role in Bank Resolution 25 Changes to Rules on Unsecured Credit 25 Shift Towards Large Exposures Regime 26 Introduction of Asset Maintenance for Foreign Banks 26 Box 3 - An Update On Basel II Implementation In Singapore 26 Legislative Amendments to Securities and Futures Act and Financial Advisers Act 27 Box 4 - Monograph On Supervisory Framework For Financial Institutions 27 T rust Companies 28 Self-assessment Initiative 28 Anti-Money Laundering & Countering the Financing of Terrorism 28 Building Confidence in E-payments and Internet Banking Systems 28 Insurance Securitisation 29 Nomination of Beneficiaries to Insurance Policies 29 Policy Owners’ Protection Fund 29 Box 5 - Supervision Of New Initiatives in the     Singapore Capital Markets - Jade And AsiaClear 30 Mortgage Insurance 30 Thematic Approach to Market Conduct Supervision 30 Box 6 - Market Manipulation 31 Mystery Shopping on Practices in the Financial Advisory Industry 31 Review on Switching of Investment Products 31 Enhancing Market Discipline 31 Corporate Governance of Listed Companies 32 Amendment to Code on Collective Investment Schemes 32 Implementation of Payment Systems (Oversight) Act 2006 32   Building Confidence in E-payments and Internet Banking Systems In recent years financial institutions have embraced newer and more innovative technologies to provide a growing range of online financial products and services to their customers. The escalating accessibility and convenience of electronic channels have rapidly reinforced the popularity of internet banking and e-payment systems. In addition to eGIRO, customers can now easily and quickly transfer money between accounts, invest their funds and make payments via internet banking. Online payment kiosks and mobile phones can also be used for banking or making payments. However, many bank customers have only partially adopted online banking because of lingering concerns about the security and safety of electronic channels. To enhance customer, investor and public confidence in internet banking and e-payments, banks in Singapore have implemented two-factor authentication for all internet banking systems in accordance with MAS’ guidelines issued in November 2005. Banks also deploy multiple layers of security and defence-in-depth control techniques to provide safe and reliable online banking. MAS and the banking industry will continue to work together to strengthen the robustness, efficiency and resiliency of online banking and e-payment systems and infrastructures.