Box Story 2: Singapore Government Guarantee on Deposits
Amidst the slowing global economy and international financial turmoil, the financial system in Singapore has remained stable and robust. Financial institutions in Singapore are sound and continue to operate normally. Singapore has not had to take extraordinary measures to maintain stability in the financial system.
Nevertheless, in response to announcements by jurisdictions in the region of blanket government guarantee on deposits, Singapore announced on 16 October 2008 a guarantee by the Singapore Government on deposits of individuals and non-bank customers of banks licensed in Singapore. This was aimed at ensuring a level international playing field for banks in Singapore.
The guarantee, which will be in place until 31 December 2010, is backed by S$150 billion of the reserves of the Singapore Government. This amount does not reflect an estimate of the likely draw on the guarantee. Singapore is in a strong financial position to provide the guarantee.
Singapore's guarantee of deposits demonstrates its confidence in the soundness of the financial system, and contributes towards restoring confidence in the international financial system.