ANNUAL REPORT 2002 / 2003
FINANCIAL SECTOR - KEY REGULATORY AND SUPERVISORY INITIATIVES
continued to work with banks on the separation of financial and non-financial
activities. This policy, announced in June 2000, requires banks in Singapore to
focus on their core financial business,
so as to minimise contagion risk and conflicts of interest. The banks are
required to complete all necessary restructuring and divestments by July 2004.
year, MAS provided close guidance to the banks to clarify some of the finer
details of the policy, and will continue the dialogue with them as they work
toward the July 2004 deadline. In January 2003, MAS lifted its 1995 car loan
guidelines which restricted car loans to 70.0% of the purchase price. MAS will
continue to review its prudential regulations and limits where appropriate, in
line with its risk-based approach.
In August 2002, MAS released a consultation paper on establishing a deposit insurance (DI) scheme. The objectives of the scheme are to provide small depositor protection and to dispel the perception of an implicit government guarantee of deposits. Key recommendations for the scheme such as a risk-based premium regime and insured deposit priority have received support. The next phase of the ongoing study will address implementation and legal issues in setting up the DI scheme. The study is expected to be completed by end 2003 and MAS will hold consultations with industry and other interested parties on the recommendations.
|Risk-Based Regulatory Regime||Prudential Policies||Enhancing MAS' Supervisory Role||Greater Consistency in Standards Across Sectors|
|Building Strong Pillars for Good Corporate Governance||Additional Requirements||Building Confidence with Sound Market and Business Conduct|
|Upholding Professional and Ethical Standards||Laying Strong Foundation for Financial Innovation||Managing Technology Risks|
|Improved Securities Trading and Clearing System||Safer Settlement System for Foreign Exchange||Payment Systems|
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