ANNUAL REPORT 2002 / 2003


DEPARTMENTS IN MAS

ECONOMIC RESEARCH, MONETARY POLICY AND RESERVE MANAGEMENT

Economic Policy Department

The Economic Policy Department (EPD) formulates monetary policy appropriate for sustained and non-inflationary economic growth in Singapore. It conducts surveillance of the domestic economy, and provides analyses and forecasts to support policy decisions. In addition, EPD undertakes in-depth studies on issues faced by the Singapore economy.

Macroeconomic Surveillance Department

The Macroeconomic Surveillance Department (MSD) conducts surveillance of the financial system to identify emerging trends and potential vulnerabilities, and closely monitors and evaluates developments in G-3 and regional economies, as well as international financial markets. It works closely with MAS’ supervisory departments to ensure that both macro and micro-prudential perspectives are brought to bear on financial stability issues.

Reserve and Monetary Management Department

The Reserve and Monetary Management Department (RMD) has two distinct functions. The Monetary Management Division (MMD) in RMD implements Singapore’s monetary policy by managing the exchange rate within its targeted policy band, and conducts money market operations to manage liquidity in the banking system. MMD is also responsible for issuing Singapore Government Securities (SGS), and fostering the development of the SGS market. RMD is also responsible for investing MAS’ foreign reserves. It operates in major bond and currency markets globally, and works with external fund managers.

DEVELOPMENT & EXTERNAL RELATIONS

External Department

The External Department (EXT), in consultation with management, develops MAS’ policies on international monetary and financial issues, enabling MAS to play an active role in international financial fora. Working closely with other Singapore government agencies, EXT promotes cooperation with other central banks, finance ministries and international financial institutions. EXT is also responsible for external communications, including media relations.

Financial Centre Development Department

The Financial Centre Development Department (FDD) is responsible for developing and promoting Singapore as an international financial centre. It identifies financial activities that add to the breadth and depth of the financial industry, develops strategies to anchor such activities in Singapore and organises events to help raise the profile of Singapore's financial sector. FDD aims to create a conducive operating environment for financial institutions through constant review of the regulatory, tax and legal framework in Singapore. To ensure longer-term competitiveness, FDD focuses on strategies to nurture a world-class financial sector workforce and financial innovation in Singapore. FDD has offices in Singapore, New York and London.

MARKET CONDUCT

Market and Business Conduct Department

The Market and Business Conduct Department (MCD) formulates and implements market and business conduct policies in the interests of depositors, investors, and policyholders. It is responsible for formulating MAS' positions on competition issues, corporate governance standards, and accounting practices, as well as administering the Financial Advisers Act and licensing insurance brokers under the Insurance Act. It is also responsible for financial education.

Securities and Futures Supervision Department

The Securities and Futures Supervision Department (SFD) has supervisory responsibility for capital markets and administers the Securities and Futures Act. It regulates the origination and trading of securities and derivatives products, supervises capital markets intermediaries, regulates the offering of shares, debentures and collective investment schemes, and oversees takeover issues. It has regulatory oversight of securities and futures markets and clearing houses. It also enforces the civil penalty regime for market misconduct.

PRUDENTIAL SUPERVISION

Banking Supervision Department and Complex Institutions Supervision Department

The Banking Supervision Department (BD) and the Complex Institutions Supervision Department (CI) are responsible for prudential oversight of all commercial banks, merchant banks, and finance companies. They license and continuously monitor the soundness of financial institutions under them through off-site surveillance and on-site examination, and also actively promote the adoption of international best practice in risk management and corporate governance in the banking industry. CI supervises local financial groups on a whole-of-group basis, across their banking, insurance/bancassurance and securities activities globally.

Insurance Supervision Department

The Insurance Supervision Department (ID) administers the Insurance Act and has as its primary objective the protection of policyholders' interests. ID adopts a risk-focused approach in the prudential and market conduct supervision of insurance companies. ID carries out its responsibilities by way of both off-site surveillance and on-site examination, and works with foreign supervisors as part of a holistic supervisory approach. In its standards development role, ID works closely with industry associations to promote the adoption of best practices by the industry.

Prudential Policy Department

The Prudential Policy Department (PPD) is responsible for formulating capital and prudential policies for banks, insurance companies and securities firms to promote a sound and dynamic financial sector. In doing so, it seeks to provide a harmonised regulatory framework that facilitates a more integrated risk-based supervisory approach across the financial sector.

Specialist Risk Supervision Department

The Specialist Risk Supervision Department (SRD) provides the financial and technology risk expertise necessary for MAS' supervisory and regulatory functions, and for the assessment of individual institutions and system-wide risks. SRD monitors developments and trends in the sector, and seeks effective and efficient approaches to deal with the risks identified. SRD also oversees payment infrastructures with the objective of fostering their stability and efficiency.

CURRENCY AND CORPORATE RESOURCE

Corporate Services Department

The Corporate Services Department (CSD) provides administrative and logistical support to other MAS departments. It also supports MAS in all its official events, functions and visits. CSD is responsible for the maintenance and operations of MAS' facilities and oversees tenancy issues. It also takes charge of all security related matters.

Currency Department

The Currency Department (CD) is responsible for maintaining the integrity of the Singapore currency issue. It issues and receives notes and coins to and from the banks, and manages the currency stock to meet demands.

Finance Department

The Finance Department (FD) is responsible for managing MAS’ financial resources. Its functions comprise control and budgeting of MAS’ assets/liabilities, and accounting, settlement, safe-custody, risk management and performance evaluation of MAS’ global investments, including the Currency Fund and the Financial Sector Development Fund (FSDF). In addition, FD administers the issuance of Singapore Government Securities (SGS) and the MAS Electronic Payment System (MEPS), and maintains the current accounts of international monetary organisations, banks and other financial institutions held with the MAS.

Human Resource Department

The Human Resource Department (HRD) formulates and implements MAS’ human resource management policies. It is responsible for attracting talent for the organisation, managing and retaining staff through a fair performance appraisal system and a competitive remuneration package, as well as developing talent through needs-based training and development programmes.

Information Technology Department

The Information Technology Department (ITD) promotes the strategic use of technology and provides IT services to the organisation. ITD also manages two nation-wide financial networks, namely the MASNET and MEPS. The networks provide the infrastructure for efficient electronic communication and collaboration in the financial sector, and minimise payment risks for Singapore’s banking system, respectively.

INTERNAL AUDIT

Internal Audit Department

The Internal Audit Department (IAD) provides independent and objective assurance of a progressive and effective control environment in MAS. This is achieved by conducting risk-focused audits to ascertain the adequacy and effectiveness of controls and procedures for managing risks arising from the whole spectrum of the MAS’ operations. IAD also performs value-added audit services to improve the economy, efficiency and effectiveness of operations.

MANAGING DIRECTOR’S OFFICE

General Counsel’s Office

The General Counsel’s Office (GCO) oversees all legal matters in MAS. This encompasses advising on various issues that emanate from the functions of MAS as a central bank and financial regulator, assisting other MAS departments in the development and formulation of regulatory and supervisory frameworks, and the drafting of statutory and regulatory instruments, commercial agreements and other legal documents.

Strategic Planning Office

The Strategic Planning Office (SPO) advances the collective formulation of corporate priorities, strategies and initiatives that best serve MAS’ objectives. The Office plays a central role in driving the strategic and corporate planning processes in MAS, and serves as the secretariat to the Board and management fora. It also seeks to build a more cohesive and integrated organisation through fostering a conducive culture for organisational effectiveness.

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