Media Releases
Published Date: 16 July 2019

IMF Reaffirms Singapore's Financial Sector Oversight as "Among the Best Globally"

Singapore, 16 July 2019… The Monetary Authority of Singapore (MAS) said today that  the International Monetary Fund (IMF) has completed its Financial Sector Assessment Programme (FSAP)On 1 August 2018, MAS announced that Singapore would participate in the International Monetary Fund’s Financial Sector Assessment Programme (FSAP) in 2018-2019. Please refer to the press release at this link. for Singapore and reaffirmed Singapore’s financial sector oversight to be “among the best globally”. 

 

2          The IMF commented that the economic fundamentals of Singapore were strong and its economic policies sound. Overall, the financial sector in Singapore was assessed to be resilient, with healthy buffers to withstand severe adverse shocks. The IMF also noted that MAS has struck a good balance in fostering financial innovation while strengthening regulatory oversight since its last FSAP review in 2013.

 

3          Key findings from the assessment includeThe findings of the FSAP Mission are summarised in a report called the Financial System Stability Assessment (FSSA). The Executive Board of the IMF has endorsed the FSSA. Please refer to endnotes for details on the FSAP process and FSSA.:

  • Singapore’s financial system is resilient even under very adverse scenarios, as demonstrated by stress tests, including a large-scale global financial market turmoil.
  • MAS’ crisis management and resolution regime for distressed financial institutions has been strengthened, with the introduction of enhanced resolution powers in 2017.
  • The MAS Electronic Payments System (MEPS+)MEPS+ is a critical payment system used for settlement of Singapore Dollar inter-bank funds transfers, Singapore Government Securities and MAS Bills. operations and oversight are compliant with international standards. 
  • MAS has the ability to act proactively to address emerging threats to financial stability through the use of macroprudential policies.
  • In the area of FinTech regulation and supervision, MAS has struck a good balance between promoting financial innovation, while safeguarding financial stability. 

4          MAS welcomes the positive assessment of Singapore’s financial system. We will review the IMF’s recommendations within the reports, and undertake appropriate measures to further strengthen our financial oversight. We thank the financial industry representatives for participating in the FSAP. 

 

5          Mr Ravi Menon, Managing Director of MAS, said, “The FSAP is a rigorous assessment, and we are pleased that it has reaffirmed Singapore’s standing as a sound, stable and well-regulated financial centre.  But ensuring that regulation and supervision remain relevant is always work-in-progress and we are pleased to have had the opportunity to learn from the IMF’s global experience in financial sector surveillance and analysis.”

 

 

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