The International Monetary Fund (IMF), in its Financial Sector Assessment Programme (FSAP), hailed Singapore’s financial sector oversight as “among the best globally.”
In a statement by the Monetary Authority of Singapore (MAS), it said that the IMF commented that the economic fundamentals of Singapore were strong and its economic policies sound.
Furthermore, the IMF assessed the financial sector in Singapore as resilient overall, with healthy buffers to withstand severe adverse shocks. It also noted that MAS has struck a good balance in fostering financial innovation while strengthening regulatory oversight since its last FSAP review in 2013.
Key findings from the assessment include:
- Singapore’s financial system is resilient even under very adverse scenarios, as demonstrated by stress tests, including large-scale global financial market turmoil.
- MAS’s 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+) 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.
- With regard to fintech regulation and supervision, MAS has struck a good balance between promoting financial innovation, while safeguarding financial stability.
“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,” said Ravi Menon, managing director of MAS. “But ensuring that regulation and supervision remain relevant is always a 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.”