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Fostering a Sound and Reputable Financial Centre

Review of 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.

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