In response to two forum letters in the Straits Times on digital banks, MAS said it agrees that it is important that the public understands the differences between the new digital banks and existing banks in Singapore. MAS said digital banks need to meet the same regulatory standards as existing banks.
Reply to Parliamentary Question on IMF’s assessment of Singapore’s financial system under the Financial Sector Assessment Programme
QUESTION NO 1383
NOTICE PAPER 1802 OF 2019
FOR WRITTEN ANSWER
Date: For Parliament Sitting on 2 September 2019
Name and Constituency of Member of Parliament
Mr Leon Perera, Non-Constituency Member of Parliament
To ask the Prime Minister in view of the findings in IMF's Financial Sector Assessment Programme for Singapore, what resources and preparation are being applied by the MAS division that supervises payment systems to manage the broad scope of supervisory duties that it undertakes.
Answer by Mr Tharman Shanmugaratnam, Senior Minister and Minister in charge of MAS:
1. The IMF, in its recent assessment of the Singapore’s financial system under its Financial Sector Assessment Programme, reaffirmed Singapore’s financial sector oversight to be “among the best globally”.
2. Specifically, it concluded that MAS’ supervision of payment systems, namely - MEPS+, Fast And Secure Transfers (FAST), Inter-bank GIRO, Singapore Dollar Cheque Clearing, and the NETS Electronic Funds Transfer at Point of Sale (EFTPOS) - was in line with international standards, and appropriate and effective.
3. Notwithstanding, in anticipation of evolving systemic risks in the payments landscape, the IMF had recommended that MAS increase its resources for the supervision of payment systems. MAS’ thinking is the same as the IMF’s on this matter. MAS has indeed been allocating additional resources for supervision of payment activities and implementing enhancements to its supervisory programme. These include leveraging data analytics capabilities, and applying appropriate standards to retail payment systems in line with their changing systemic importance. MAS will continue to watch developments in the payments landscape and ensure its capabilities and supervisory approaches are appropriate.
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