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Modest Recovery in 2003
Financial Market Activity
Rise in Asian Dollar Market Lending . Box 12 – A Robust Financial System
Healthy Growth in Corporate Debt Market . Active Trading in Equities and Futures Market
Vibrant Treasury Market . Box 13 – The Singapore IPO Market
Mixed Performance for Insurance . Box 14 – Bank Loans to HDB Flat Buyers
Rise in Asian Dollar Market Lending
The Asian Dollar Market (ADM) rebounded in 2003, lifted by renewed optimism in the global economy (See Chart 3). Total assets in the ADM reached US$509.1 billion at end 2003, up 5.5% from US$482.6 billion at end 2002. The increase was largely due to the surge in the holdings of securities.

Mirroring developments in domestic lending, ACU loans to non-bank customers grew 7.3%, increasing from US$77.9 billion at end 2002 to US$83.6 billion at end 2003. With positive year-on-year growth for the first time since 1997, the decline of the ADM market may have finally bottomed out (See Chart 4). This turnaround was underpinned by an increase in lending to East Asia and the Americas.

Interbank lending in the ADM continued to be firm, amounting to US$341.9 billion at end 2003, a modest 1.8% increase from US$336 billion at end 2002 (See Chart 5). Most of the interbank lending in the ADM was directed to East Asia.
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