Introduction
     
Content Page
Board of Directors
Chairman's Statement
Board Committee
Management Team
Organisation Chart
Our Achievements and Work in Progress
 
OUR ACHIEVEMENTS AND WORK IN PROGRESS
 
REGULATION, DEVELOPMENT AND STABILITY OF THE FINANCIAL SECTOR
 
Achievements   Work In Progress
     
Manage within a riskier environment Benchmarked our system of financial regulation and supervision against best practices by completing the IMF/World Bank's Financial Sector Assessment Programme. The study concluded that the financial sector is generally robust with few short-term vulnerabilities.

Enhanced our risk-based supervision methodologies and capabilities by modifying and updating specific supervisory practices. Notably, we completed the grouping of all banks by risk and impact profiles and allocated supervisory resources accordingly.

To enhance banking supervision as well as financial system surveillance, we revised regulatory returns from banks and merchant banks.

Improved efficiency of securities regulation by assuming primary responsibility for inspecting SGX Member firms.

We revised the capital adequacy requirements for Singapore-incorporated banks under the current Capital Framework.

To implement recommendations on offers of investments made by the Company Legislation and Regulatory Framework Committee (CLRFC) and improve consistency between the SFA and FAA, the two Acts were amended in phase one of the planned two-phase amendments.

Strengthened the scope of inspections by conducting thematic inspections to assess specific risks.

Improved the efficiency of payment
infrastructures by including the
Singapore Dollar in the Continuous
Linked Settlement system and
implementing the Cheque
Truncation System.

Enhanced regulatory transparency
by consolidating credit and charge
card guidelines into a comprehensive
set of regulations.

To enhance our financial surveillance, we compiled IMF recommended Financial Soundness Indicators (FSIs), undertook studies to identify areas with stability concerns and conducted stress testing of the financial system. We also produced the first issue of the Financial Stability Report (FSR), in line with the practice of some major central banks.

To promote stability of the international financial system, we participated in various international fora such as the
Financial Stability Forum and the Committee on the Global Financial System.

Strengthen partnership with industry
Tapped on industry expertise by formally adopting a policy of consulting industry on regulatory changes. From 1 April 2003 to 31 March 2004, we issued 19 public consultation papers.
  Enhance operating environment
To enhance risk management in financial institutions, we consulted industry on comprehensive guidelines for internal controls, management of credit and market risks as well as outsourcing, and are finalising them for issuance.

To maximise the effectiveness of supervision, work is ongoing to further enhance frameworks for risk-focused and integrated supervision of financial institutions.

We continue to work with Singapore-incorporated banks to implement the New Basel Capital Framework. In the insurance sector, we will be applying the risk-based capital framework.

To strengthen our supervisory capabilities, we are enhancing the indicators for monitoring banks¡¯ activities and risk profiles.

To enhance market conduct standards, we will develop a risk-rating framework to dedicate more supervisory resources to companies with higher risk of market misconduct.

To keep our regulatory framework responsive and conducive to developments in capital markets, and to implement the remaining CLRFC recommendations, we will complete phase two of the SFA and FAA amendments.

To add depth and vibrancy to Singapore;s capital markets, we will introduce a new Business Trusts Act to regulate business trusts as a new business structure.

To ensure high standards of professionalism and business conduct in the trust service industry, we will establish a new regulatory framework for trust companies, including a new Trust Companies Act.

To promote safe and efficient payment systems in Singapore, we will enact the Payment Systems Oversight Act and implement a new generation Real Time Gross Settlement system, MEPS+, in 2005.

To provide a comprehensive and regular assessment of Singapore¡¯s financial stability, we will prepare the FSR on a semi-annual basis. We will also continue with regular stress testing, studies and surveys of financial institutions on various issues with stability implications.

We will continue to support international initiatives on financial stability including compilation of a consistent set of FSIs across countries (by IMF) and survey on stress testing (by BIS).

Enhance market discipline
To enhance corporate governance standards, we are finalising the regulations and guidelines on corporate governance for locally-incorporated banks and direct insurers.
     
   
ECONOMIC DEVELOPMENTS AND MONETARY POLICY >>