SINGAPORE (Aug 1): The Monetary Authority of Singapore (MAS) announced today that Singapore will undergo the International Monetary Fund (IMF)’s Financial Sector Assessment Programme (FSAP) this year.
The programme will assess the resilience of Singapore’s financial sector, the quality of MAS’s regulatory framework and supervision, and capacity of authorities to manage and resolve financial crises. This will be Singapore’s third FSAP assessment.
The scope of the FSAP will include a stress test of the financial system under hypothetical macroeconomic scenarios; MAS’s 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’s regime for managing crises and resolving banks in an orderly manner.
The IMF FSAP delegation will visit Singapore between November and February to perform the assessment. During their visit, the IMF delegation will meet senior representatives from MAS, other relevant government agencies, financial institutions, and academic bodies. The FSAP report will be completed and published in 2H19.
Singapore, along with 28 other jurisdictions, is assessed by the IMF to be a systemically-important financial centre given its large and globally connected financial sector. Systemically-important financial centres are required to undertake a financial stability assessment every five years.
In the last FSAP assessment in 2013, the IMF had assessed that Singapore’s financial sector was well-regulated, and displayed 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. This assessment by the IMF affirmed Singapore’s standing as a sound and stable financial centre,” says MAS in its press statement.