IMF: Singapore financial sector is resilient

A review by the International Monetary Fund (IMF) has described Singapore's financial sector as well-regulated and highly developed. -- ST FILE PHOTO: LIM SIN THAI
A review by the International Monetary Fund (IMF) has described Singapore's financial sector as well-regulated and highly developed. -- ST FILE PHOTO: LIM SIN THAI

A review by the International Monetary Fund (IMF) has described Singapore's financial sector as well-regulated and highly developed.

The IMF praised the local authorities for their "sound policies and skilful macroeconomic management" that have spurred a rebound in economic activity since the 2008 financial crisis while keeping inflation in check.

It added that the financial rules and supervision frameworks here are among the best globally.

The review, which started in late June last year, stemmed from a decision in 2010 to put 25 advanced economies through a stability assessment every five years.

Assessors found that Singapore has a very high level of compliance with international standards for supervising the banking, insurance and securities sectors.

Financial market infrastructures, including the Singapore Exchange's clearing and settlement systems, were also found to be sound and efficient.

Stress tests conducted during the review also indicated that Singapore's banks and insurers would be resilient in the face of poor economic conditions.

Monetary Authority of Singapore (MAS) managing director Ravi Menon noted that the IMF review is a rigorous and comprehensive one.

"It provided us the opportunity to be independently benchmarked against international best practices and to evaluate policy actions to address any vulnerabilities in our financial system," he added.