ROBUST, TRUSTED, DYNAMIC AND
PURPOSEFUL FINANCIAL CENTRE
- A ROBUST FINANCIAL CENTRE
- Industry Tests
- Securities, Futures and Over-the-Counter Derivatives
- International Supervisory Cooperation
A ROBUST FINANCIAL CENTRE
Industry-Wide Stress Tests
MAS conducts annual industry-wide stress tests of financial institutions in Singapore. In 2014, financial institutions were stress tested on an adverse macroeconomic scenario where US economic growth collapses, the Eurozone enters a recession and Asian economies underperform. This scenario included a sharp rise in interest rates and a large decline in property prices. The stress tests showed that financial institutions in Singapore are resilient to the global and domestic risks they are exposed to. In addition to the macroeconomic scenario, direct insurance companies were also stress tested on other insurance scenarios such as a flu pandemic.
As part of the exercise, MAS also shared findings and lessons from the stress tests with participating institutions. The issues discussed included key stress test results, good financial institution practices and emerging risks identified through MAS' surveillance work and participation in international fora.
Industry-Wide Business Continuity Exercise
The Association of Banks in Singapore (ABS) and MAS jointly organised an industry-wide business continuity exercise on 21 November 2014. This is the fourth exercise in the last eight years. A total of 141 organisations participated. Participants included commercial and investment banks, finance companies, insurance/reinsurance firms, asset management firms, securities and broking houses, Singapore Exchange Ltd (SGX), financial market infrastructure providers, ABS and MAS. The exercise provided a platform for financial institutions to test and verify their crisis management plans for cyber-attacks that could compromise data, affect the availability of critical systems and services, and disrupt market infrastructure. Financial institutions also tested their communication and coordination with regulators, critical infrastructure providers and with one another. MAS and the industry will be working jointly to address the lessons learned, so as to enhance the financial industry's overall preparedness and resilience to cyber-attacks.
Industry Penetration Testing Guidelines and Exercise
MAS and the ABS Standing Committee on Cyber Security jointly developed a set of industry guidelines on the planning and execution of penetration testing (PT) of IT systems by financial institutions. These were intended to help raise the quality of PTs conducted by financial institutions, and to further improve the cyber resilience of the financial sector.
Using these guidelines, 11 major financial institutions subsequently participated in a PT exercise. Observations from the analysis of the results have been shared with the industry to raise awareness of the common and high-risk vulnerabilities.