S'pore financial sector highly developed, well regulated: IMF
Such was the laudatory evaluation of Singapore's financial system by the International Monetary Fund (IMF) in an assessment conducted under its Financial Sector Assessment Programme (FSAP). The Fund conducts such assessments of key financial centres every five years.
Its report on Singapore was released last night.
While it found much to praise, it also suggested that Singapore needs to enhance its existing frameworks, further develop its crisis management arrangements, and remain vigilant over credit growth.
The IMF noted that overall compliance with all supervisory standards - banking, insurance, securities, and financial-market infrastructures, notably for over-the-counter (OTC) derivatives - were very high compared with other major financial sectors.
For example, banks' capital requirements are higher than those established by Basel III, and there is a clear legal framework for capital-market activities.
It said that crisis management and resolution arrangements are generally strong here - with responsibilities being clearly allocated among several public bodies - with the necessary legal framework in place.