What has happened?
The International Monetary Fund (IMF) is to assess the resilience of the Singaporean financial sector.
What does this mean?
The Monetary Authority of Singapore (MAS) has announced that Singapore will undergo the IMF's Financial Sector Assessment Programme (FSAP) for the third time.
In addition to the resilience of the financial sector, the programme will review the quality of MAS' regulatory framework and supervision and its capacity to manage and resolve financial crises.
Specifically, the scope of the FSAP will include:
- a stress test of the financial system under hypothetical macroeconomic scenarios;
- MAS’ regulatory and supervisory approaches covering FinTech and cybersecurity, as well as MAS Electronic Payments System (MEPS+), which is a critical payments system;
- Singapore’s macroprudential policy framework to mitigate systemic financial risk; and
- MAS’ regime for managing and resolving banking crises.
The assessment will take place in November 2018 and February 2019 and will be Singapore’s third FSAP assessment.
In the last FSAP assessment in 2013, the IMF said that Singapore’s financial sector was well regulated, and had a high level of compliance with international standards for the regulation and supervision of the banking, insurance and securities sectors, and financial market infrastructures.
Stress tests indicated that banks and insurers were resilient to adverse macroeconomic scenarios.
Crisis management and resolution arrangements were assessed to be strong.
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