ANNUAL REPORT 2002 / 2003


Structure of the Financial Sector

The liberalisation measures as well as market forces have led to some consolidation of the sector. The number of banks declined to 117 in March 2003 from 152 in March 1997. The number of merchant banks also saw a decline from 80 to 53 over the same period. A similar trend was also observed in insurance and finance companies. (See Statistical Annex B1.)

However, total assets of financial institutions1 rose to S$1.34 trillion at end 2002 from S$1.31 trillion at end 1997. This was due to an increase in insurance companiesí and capital markets intermediariesí assets and, to a smaller extent, domestic banking assets. These increases were partially offset by a decline in the assets of the Asian Dollar Market (ADM) and finance companies.

Charts 1 and 2 show the distribution of assets. The share of total ADM assets has shrunk 7.7 percentage points since the Asian financial crisis. (See Box 8.) In contrast, the share of insurance companiesí assets increased by 2.7 percentage points, due to the liberalisation of the Central Provident Fund (CPF) Investment Scheme in January 2001, while that of capital markets intermediaries rose marginally.

1. These include banks, merchant banks, insurance companies, finance companies and capital markets intermediaries.


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

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