MAS Spells Out its Supervisory Approach in a New Monograph
Singapore, 19 April 2004...The Monetary Authority of Singapore (MAS) today issued a monograph titled "Objectives and Principles of Financial Supervision in Singapore". The monograph spells out MAS' objectives of supervision, the functions it performs, and the principles that guide its supervisory approach. A key theme of the monograph is that all stakeholders have a shared responsibility to achieve a sound and progressive financial services sector.
In issuing the monograph, MAS explains what supervision sets out to achieve, and what it can and cannot do in areas like failure prevention and consumer protection. There are no fundamental changes to MAS' approach to financial supervision.
The monograph highlights the following points:
MAS' approach is proactive and risk focused
In seeking financial stability, MAS does not aim to totally prevent failure of any financial institution
MAS adopts a business-friendly approach without compromising the safety and soundness of individual institutions or systemic stability
Other stakeholders play important roles, in some cases primary roles, in ensuring the safety and soundness of financial institutions
Consumers bear principal responsibility for their financial decisions and MAS has a role in helping to ensure that consumers are well-informed and empowered to assume the responsibility
This document is intended to further enhance the transparency of MAS' operations and is the second monograph that MAS has issued. The first monograph "Monetary Operations in Singapore" was issued in January 2003.
A copy of the monograph is available from the MAS website www.mas.gov.sg from Monday, 19 April 2004.