ANNUAL REPORT 2002 / 2003


FINANCIAL SECTOR - PERFORMANCE AND GROWTH  

A MORE RESILIENT FINANCIAL SECTOR

Singapore’s financial sector proved resilient last year in the face of growing geopolitical uncertainties, weak global financial markets, and slowing global economic activity. This resilience was seen in indicators such as liquidity positions, capital adequacy ratios and profitability of the financial institutions, and was underpinned by the general strength of household and corporate balance sheets.

The progressive liberalisation of the financial industry since 1997 has changed its composition. While the full benefits of this liberalisation have not been realised because of the succession of exogenous shocks that hit the economy, the financial services sector’s increasing diversity has been a cushion against the effects of a downturn.

This was especially so in 2002 when the financial sector contracted by 4.8% in value-added terms. While activities such as bank lending, insurance and stockbroking were affected, growth in asset management, bond market and derivatives trading activities have helped to dampen volatility in overall financial sector growth.  

 

 

A More Resilient Financial Sector Structure of Financial Sector Financial Market Activity
Singapore Government Securities Market  Corporate Debt Market

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