a Sound and Reputable Financial Centre
Deposit Insurance Scheme in Singapore
The deposit insurance
(DI) scheme in Singapore was implemented in 2006 with
the primary objective of protecting small depositors.
Under the scheme, Singapore dollar deposits held by
individuals and charities in standard deposit accounts
with a full bank or finance company in Singapore are
insured up to S$20,000 per depositor per scheme member.
The design of the scheme was guided by several considerations,
including the need to provide adequate protection
for the majority of small depositors while limiting
the cost of DI to scheme members and depositors, and
preserving the incentives for large depositors to
exercise market discipline.
As part of our
regular review, MAS, together with the Singapore Deposit
Insurance Corporation (SDIC) which administers the
scheme, are proposing changes to enhance depositor
protection. These proposals are set out in a public
consultation paper issued in February 2010. Among
others, it is proposed that the scope of DI coverage
be expanded to include non-bank depositors in general,
including business depositors, and to raise the coverage
limit to S$50,000. CPF monies placed by an individual
depositor with a scheme member will be insured under
a separate revised S$50,000 limit. MAS and SDIC are
studying feedback received and will work with the
scheme members to implement the proposed amendments
by early 2011.