Measures Taken by MAS in View of IMF's Financial Sector Assessment Programme Findings for Singapore
Prime Minister's OfficeSpeakers
Summary
This question concerns the resources and preparation applied by the Monetary Authority of Singapore (MAS) to supervise payment systems following findings from the International Monetary Fund’s (IMF) Financial Sector Assessment Programme. Mr Leon Perera inquired about the management of MAS’s broad supervisory duties in light of the IMF’s recommendations for the sector. Senior Minister Tharman Shanmugaratnam noted that while oversight remains effective and aligned with international standards, MAS is allocating additional resources and leveraging data analytics to address evolving systemic risks. He highlighted the implementation of enhancements, such as applying appropriate standards to retail payment systems in accordance with their changing systemic importance. The Minister concluded that MAS will continue monitoring the landscape to ensure its supervisory capabilities and approaches remain appropriate.
Transcript
2 Mr Leon Perera asked 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.
Mr Tharman Shanmugaratnam (for the Prime Minister): The International Monetary Fund (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".
Specifically, it concluded that the Monetary Authority of Singapore's (MAS) supervision of payment systems, namely – MAS Electronic Payment System (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.
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.