MAS' New Organisational Structure 3 Apr 1998
MAS has put in place a new organisational structure with effect from 1 April 1998. The new structure will better support MAS' expanded roles and functions and its new regulatory approach. It will also align MAS' organisational capabilities with changes in the external environment.
2 Expanded Roles and Functions: MAS' principal functions remain unchanged, namely to promote macroeconomic stability, foster a sound financial system, develop Singapore as an international financial centre, and manage MAS' foreign reserves. Within these broad functions, however, MAS needs to build up key capabilities in strategic and corporate planning, financial sector promotion, and supervisory policy development. The new organisational structure will support this.
3 Reorientation in Regulatory Approach: In line with a shift in emphasis from regulation to supervision, MAS needs to enhance and integrate its supervisory functions. MAS' new supervisory approach is to emphasise systemic risk, while allowing institutions greater leeway to take business risks for themselves. This requires MAS to develop risk-based supervisory procedures, distinguish strong players from weaker ones, and allow more room for innovation.
4 Changes in the Environment: The structure of the financial services sector is changing dynamically. Traditional boundaries between products are getting blurred and activities are becoming more integrated. MAS needs to streamline and integrate its approach to supervising and regulating financial institutions, so as to align itself with these industry trends.
5 The key changes are as follows:
- The Banking and Financial Institutions Group (BFIG) will be reconstituted as the Financial Supervision Group (FSG). FSG will consist of four departments: Banking Department (BD), Securities and Futures Department (SFD), Insurance Department (ID), and Supervisory Policy Department (SPD). The Group will be headed by Mr Tharman Shanmugaratnam, who will be designated Deputy Managing Director (Financial Supervision).
- A Financial Sector Promotion Department (FPD) will be set up, separate from the FSG, to focus MAS' efforts in promoting the financial industry and Singapore's role as a financial centre. The department will report directly to the Managing Director. Mr Tan Chek Ming, Director (Services Development), EDB, will be seconded part-time to MAS for one year as head of FPD.
- A Planning and Policy Co-Ordination Unit (PPC), under the Managing Director's Office, will strengthen policy integration and strategic planning within MAS. PPC will be headed by Mr Ravi Menon.
- A Corporate Support Group (CSG), to be headed by a Deputy Managing Director (Corporate Support), will give more emphasis to personnel management and information technology. As the de-facto central bank, MAS needs to attract and retain a good proportion of the best people in the financial industry. The Deputy Managing Director position is currently vacant.
- Dr Teh Kok Peng, hitherto Deputy Managing Director (Economics), will be re-designated Deputy Managing Director (International). His principal duties will cover international economic issues . The Economics Department (ED), headed by Dr Khor Hoe Ee, will report directly to the Managing Director.
- The International Department will be renamed Markets and Investments Department (MID). This more accurately reflects the range of the department's functions. It will continue to be headed by Ms Yeo Lian Sim, who will be designated Assistant Managing Director (Markets and Investments).
FINANCIAL SUPERVISION GROUP (FSG)
6 Integrate and Enhance Supervisory Operations: The Banking Department (BD) will integrate the existing Foreign Institutions Department, Domestic Institutions Division, and Inspection Division. It will oversee all commercial banks, merchant banks and finance companies, local and foreign. The reconstitution will strengthen co-ordination between off-site supervision and on-site examination, which will aid in the implementation of a risk-based supervisory approach. It will also provide greater scope for developing staff capabilities in broader supervisory skills. BD will be headed by Mrs Foo-Yap Siew Hong, who will be designated Senior Executive Director.
7 The Securities and Futures Department (SFD) will bring together the existing Securities Industry Department, SIC Secretariat, and Futures Division. SFD will be responsible for regulating securities, asset management and financial futures companies, and the capital markets. It will be organised into three divisions: Securities and Asset Management, Financial Futures, and Corporate Finance. The Securities and Asset Management Division will give priority to developing supervisory practices for the fund management industry, following best international practices. The new Corporate Finance Division will regulate take-overs and mergers, recommend policy on corporate fund-raising, and regulate unit trusts and other investment products. It will eventually take over the functions currently performed by the Registrar of Companies with regard to the registration of unit trusts, so as to allow for seamless regulation of such products within one Government authority. The position of head for the SFD is currently vacant, although the heads for its three Divisions are in place.
8 Consolidate Insurance with Banking and Capital Markets: The Insurance Department (ID) will be brought together with the other supervisory departments under FSG. This recognises the blurring of product distinctions between banking and insurance and the need to align the regulatory and supervisory approach in these two industries. A similar integration of regulatory functions is happening in other countries. ID will continue to be headed by Mrs Lim Shu Chiau.
9 Strengthen Development of Supervisory Policy: The new Supervisory Policy Department (SPD) will strengthen policy thinking and formulation in financial sector regulation and supervision. SPD will co-ordinate a major review of regulatory and supervisory policies concerning banks and other financial institutions. It will also, on an ongoing basis, undertake market analyses and risk assessment within its Market Analysis and Supervisory Policy Development Division, and provide legal services on regulatory and supervisory matters within its Supervisory Legal Services Division. The position of head for SPD is vacant, but the heads for its two Divisions are in place.
NEW UNITS: FPD AND PPC
10 Build Up a Stronger Promotion Capability: The new Financial Sector Promotion Department (FPD) will give greater focus to MAS' efforts to develop Singapore as a major financial centre in Asia, and globally. Besides attracting new activities, players, and products, FPD will carry out manpower and IT planning for the financial sector, and design and implement incentive schemes. FPD will also provide assistance to financial institutions that need help when dealing with the many government agencies and departments.
11 FPD will work closely with private sector industry bodies and help gather industry feedback. It will also work with other MAS departments and government agencies such as the Economic Development Board (EDB), the Ministry of Manpower (MoM), and the National Computer Board (NCB). MAS will take advantage of EDB's extensive network and promotional experience to promote Singapore as a financial centre. FPD will report directly to the Managing Director. MAS will be recruiting people with industry knowledge, at different levels, to staff the department.
12 Strengthen Policy Integration and Strategic Planning: The Planning and Policy Co-Ordination Unit (PPC) was formed in February this year, under the Managing Director's office. Its principal functions are cross-department policy co-ordination and integration, strategic and corporate planning, organisational development, and media relations. As part of its planning function, PPC is working with strategy consultants, McKinsey & Co, and co-ordinating with other MAS departments to help formulate strategies for further developing Singapore's financial sector.
RESTRUCTURED CORPORATE SUPPORT GROUP
13 The Corporate Support Group (CSG) will consist of the Human Resource and Corporate Services Department (HRD) [formerly called Personnel and Administration Department], the Information Technology Department (ITD) [formerly called Information Services Department], and the Finance Department (FD). HRD will continue to be headed by Mrs Shih Siew Poh; ITD by Mrs Huay Khee Chuang; and FD by Mr Koh Ching Ang.
14 The Internal Audit Department (IAD) will continue to report directly to the Managing Director, and be headed by Mrs Irene Khong.
STRONGER EMPHASIS ON HUMAN RESOURCE MANAGEMENT
15 A critical success factor for MAS will be the quality of its staff. Hence the emphasis on human resource development and recruitment. MAS currently has some vacant positions at senior and middle management, and will be recruiting actively in the coming months to fill them. It will also significantly increase staff strength in the areas of financial sector supervision and promotion. This will mean recruiting staff at all levels.
16 MAS' new organisational structure follows a major review of its functions and capabilities. The new structure will help MAS to integrate and co-ordinate its functions in monetary policy, financial supervision, and promotion of the financial industry. It will also help promote a more competitive and dynamic environment, in which MAS and industry can forge a close partnership in fostering a sound and progressive financial sector.
MONETARY AUTHORITY OF SINGAPORE
1Dr Teh will continue to hold a concurrent post in the Government of Singapore Investment Corporation (GIC), as the Deputy Managing Director in charge of the Special Investments and Real Estate Departments.