ANNUAL REPORT 2002 / 2003


THE FINANCIAL SECTOR - KEY REGULATORY AND SUPERVISORY INITIATIVES

Greater Consistency in Standards Across Sectors

Further progress was also made in bringing about greater consistency in standards across banks, insurance companies and securities firms.

Consolidation and innovation have in the last two years intensified in the financial services industry in Singapore. While significant differences remain in the core business activities of banks, insurance companies and securities firms, some of their products and services have crossed the sectoral divide. MAS thus needs to ensure greater consistency in our application of policies and rules across the different sectors.

In addition, some industry players, like local banking groups, have complex group structures and operations that straddle different industries. MASí traditional approach of supervising on an industry basis is now less appropriate for such groups. Risks at an individual entity could have implications for the entire group.

To strengthen our capacity to supervise and assess the risk profile of financial institutions on a group-wide basis, a Complex Institutions Supervision Department was established. This department will take an integrated approach to supervising these institutions, evaluating them on a whole-of-group basis across their banking, insurance and securities activities. A Supervisory Methodology Unit within this department will develop and enhance the practice of consolidated and integrated supervision.

Our internal systems were further improved to support the new integrated supervision initiatives. An internal licensing database gives supervisors of capital markets intermediaries and financial advisers ready access to information about the licensees, which makes the supervision process more efficient.

The Banking Supervisory System has also been enhanced to offer MAS’ examiners integrated and direct access to key statistics, ratings, reports, and audit findings of the financial institutions through a single web-based interface.

 

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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