ANNUAL REPORT 2002 / 2003


THE FINANCIAL SECTOR - KEY REGULATORY AND SUPERVISORY INITIATIVES

LAYING A STRONG FOUNDATION FOR FINANCIAL INNOVATION

Technological developments have propelled major innovations in financial systems globally. Many online financial systems have become increasingly dependent on networked computer technologies. Some of these new technologies have security flaws and vulnerabilities that have become an issue and need to be addressed.

The value and volume of financial transactions taking place on the internet have grown rapidly, and technology risks have become an issue that must be addressed. Financial institutions should establish and maintain robust technology risk management policies, processes and practices, including strong security measures to protect their information assets and systems. Going forward, the cost of implementing security could be regarded as a prudent cost of doing online business.

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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