ANNUAL REPORT 2002 / 2003


THE FINANCIAL SECTOR - KEY REGULATORY AND SUPERVISORY INITIATIVES

Enhancing MASí Supervisory Role

Risk-focused supervision involves assessing key risks facing financial institutions and their ability to manage these risks. MAS has enhanced its risk-focused supervision capabilities in recent years with the implementation of structured risk assessment frameworks for banks, insurance companies and capital markets intermediaries. Using these frameworks, MAS evaluates the risk profile of each institution and the adequacy of its risk management practices to form an overall assessment of the institution’s health and the likelihood of key risks materialising in the future. In addition to the risk assessment, MAS takes into account the impact posed by the financial institution to Singapore’s financial system and economy, to design an appropriate supervisory plan for the institution. Greater supervisory attention is given to those institutions that are systemically important and/or more risky.

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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