MAS: Annual report 2006 / 2007
CONTENTS
HOME
 
ENTERPRISE: Our Role
BUILDING ON A ROBUST MACROECONOMIC ENVIRONMENT
DEVELOPMENTS IN THE SINGAPORE SECURITIES MARKET
FOSTERING A SOUND & REPUTABLE FINANCIAL CENTRE
RISK MANAGEMENT & INFRASTRUCTURE
GROWING SINGAPORE AS AN INTERNATIONALLY COMPETITIVE FINANCIAL CENTRE
CURRENCY
ORGANISATIONAL INITIATIVES
FOSTERING A SOUND & REPUTABLE FINANCIAL CENTRE 25
Changes to Capital Requirements for Singapore-incorporated Banks 25
Enhancing MAS’ Role in Bank Resolution 25
Changes to Rules on Unsecured Credit 25
Shift Towards Large Exposures Regime 26
Introduction of Asset Maintenance for Foreign Banks 26
Box 3 - An Update On Basel II Implementation In Singapore 26
Legislative Amendments to Securities and Futures Act and Financial Advisers Act 27
Box 4 - Monograph On Supervisory Framework For Financial Institutions 27
T rust Companies 28
Self-assessment Initiative 28
Anti-Money Laundering & Countering the Financing of Terrorism 28
Building Confidence in E-payments and Internet Banking Systems 28
Insurance Securitisation 29
Nomination of Beneficiaries to Insurance Policies 29
Policy Owners’ Protection Fund 29
Box 5 - Supervision Of New Initiatives in the  
  Singapore Capital Markets - Jade And AsiaClear 30
Mortgage Insurance 30
Thematic Approach to Market Conduct Supervision 30
Box 6 - Market Manipulation 31
Mystery Shopping on Practices in the Financial Advisory Industry 31
Review on Switching of Investment Products 31
Enhancing Market Discipline 31
Corporate Governance of Listed Companies 32
Amendment to Code on Collective Investment Schemes 32
Implementation of Payment Systems (Oversight) Act 2006 32
 
Building Confidence in E-payments and Internet Banking Systems
In recent years financial institutions have embraced newer and more innovative technologies to provide a growing range of online financial products and services to their customers. The escalating accessibility and convenience of electronic channels have rapidly reinforced the popularity of internet banking and e-payment systems. In addition to eGIRO, customers can now easily and quickly transfer money between accounts, invest their funds and make payments via internet banking. Online payment kiosks and mobile phones can also be used for banking or making payments.

However, many bank customers have only partially adopted online banking because of lingering concerns about the security and safety of electronic channels. To enhance customer, investor and public confidence in internet banking and e-payments, banks in Singapore have implemented two-factor authentication for all internet banking systems in accordance with MAS’ guidelines issued in November 2005. Banks also deploy multiple layers of security and defence-in-depth control techniques to provide safe and reliable online banking. MAS and the banking industry will continue to work together to strengthen the robustness, efficiency and resiliency of online banking and e-payment systems and infrastructures.