Monetary Authority of Singapore Annual Report 2012/2013
  • COMMITTED TOWARDS INTERNATIONAL EFFORTS ON FINANCIAL STABILITY AND FINANCIAL REGULATORY REFORM
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COMMITTED TOWARDS INTERNATIONAL EFFORTS ON FINANCIAL STABILITY AND FINANCIAL REGULATORY REFORM

Singapore is Committed Toward International Efforts for Financial Regulatory Reform

As a member of the main committees and multiple working groups of the Financial Stability Board (FSB), Basel Committee on Banking Supervision (BCBS), International Association of Insurance Supervisors (IAIS), International Organisation of Securities Commissions (IOSCO), and Committee on Payment and Settlement Systems (CPSS), MAS continues to contribute to the development and implementation of international regulatory standards and the enhancement of global financial stability.

MAS co-chaired the BCBS Core Principles Group which delivered the revised Core Principles for Effective Banking Supervision in September 2012. The Core Principles are the global standard for sound prudential regulation and supervision of banks and banking system. The revisions incorporate key lessons from the last financial crisis to strengthen supervisory practices and risk management, with particular emphasis on a more forward-looking and effective risk-based approach to supervision. MAS also co-chairs the BCBS working group that analyses banks’ risk weighting of assets held in the banking book. This work is part of the BCBS Regulatory Consistency Assessment Programme to ensure consistent implementation of the Basel framework. In addition, we are a member of the BCBS Working Group on Liquidity that developed the final text of the revised Liquidity Coverage Ratio (LCR) in January 2013. The LCR is an essential element of the Basel III reforms to promote the short-term resilience of banks’ liquidity risk profiles and improve the banking sector’s ability to absorb shocks arising from financial and economic stress.

At the FSB, MAS chaired the FSB working group on Risk Governance that completed the thematic peer review on risk governance in February 2013 to take stock of risk governance practices at both national authorities and firms. The peer review identified sound practices and sets out recommendations that will help raise the bar on supervisory expectations for risk governance. MAS also participated actively in the discussions which help shape international regulatory proposals on resolving failing financial institutions, addressing the systemic and moral hazard risks associated with systemically important financial institutions, implementing over-the-counter derivatives reforms, as well as strengthening the oversight and regulation of shadow banking.

MD, MAS has also been appointed Chair of the FSB Standing Committee on Standards Implementation (SCSI), and will serve a two-year term from 2013 to 2015. The SCSI is one of four FSB Standing Committees, and is tasked with ensuring comprehensive and rigorous monitoring of agreed G20/FSB financial reforms in consultation and coordination with relevant standard setters. Under MAS’ chairmanship, SCSI will coordinate and drive implementation monitoring efforts across key G20 initiatives, including OTC derivatives reforms, resolution regimes and shadow banking.