THE FINANCIAL SECTOR:
KEY SUPERVISORY AND REGULATORY INITIATIVES
     
Content Page
Supervision
Regulation
Risk-based Regulatory Regime
Fine-Tuning Regulatory framework
Ensuring Sound Market Conduct
Innovative Systems for Efficient Payment
and Settlement
 
 
RISK-BASED REGULATORY REGIME
 
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Liquidity Requirement . Box 4 – Being Prepared For Emergencies
 
Box 4
BEING PREPARED FOR EMERGENCIES
 
Financial institutions are expected to have sound Business Continuity Management (BCM) to cope with emergencies and unplanned disruptions to their operations. MAS continued to emphasise the importance of sound BCM in its overall supervisory assessment. MAS also conducted a thematic BCM review to assess the financial institutions’ state of readiness against disruptions.

In June 2003, MAS issued BCM guidelines after consulting the public. The guidelines encompass seven principles which financial institutions are encouraged to adopt to strengthen their BCM. They may adapt the guidelines as necessary, taking into account their specific business activities and operating environments. The principles provide guidance on recovery time objectives for critical business functions, separation policy to address concentration risk, and catering for a wide-area outage scenario among others.

Financial institutions recognise the need to work together on BCM matters. The banking industry, through the Association of Banks in Singapore (ABS), formed a BCM Task Force to enhance the industry’s resilience and responsiveness to crisis. The ABS BCM Task Force has set up an industry-wide crisis co-ordination framework. It also held meetings with service providers to better appreciate the interconnectedness of participants in the financial sector and their BCM preparedness. We support and participate in the Task Force.
 
 
Enhancing Risk-focused Supervisory Approach
Box 1 – Fostering a Sound and Progressive Financial Services Sector
Enhancing MAS’ Supervisory Capabilities
Box 2 – Stress Testing of Life Insurers
Box 3 – Streamlining Inspection Function
Thematic Inspections to Improve Surveillance