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The Republic of Singapore is the only sovereigncity-state in the world which is also an islandcountry.
It is one of the 5 founding members of ASEAN
It is 4th largest Financial Centre
Peoples Action Party (PAP) has been the rulingparty since 1959.
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SINGAPORE INDIA
Continent Asia Asia
Motto "Onward, Singapore" "Truth Alone Triumphs"
Language English Hindi
Currency Singapore Dollar Indian RupeeCapital city Singapore New Delhi
Government Type Republic Constitutional, Fedral and
Republic
GDP $315 Billion $4.76 Trillion
GDP per Capita $59,700 $3.900
GDP growth rat 1.3% 6.5%
Unemployment Rate 1.9% 8.5%
Inflation 4.6% 9.3%
Literacy Rate 93% 62.8%
Foreign Exchange Reserves $238 Billion $298 Billion
External Debt $23,620,000,000 $376,300,000,000Public Debt (% of GDP) 118% 50%
Domestic Credit to Private
Sector (% of GDP)
120.61% 51.49%
Domestic Credit Provided by
Banking Sector (% of GDP)
99.54% 76.59%
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Trade (2013-14) in US$ Billions
Exports
Imports
Trade surplus / (deficit)
Singapore 415 366 49
India 298.4 500.4 (202)
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As at 30 April 2012, there were 769 listed companies onSGX with a market capitalisation of SGD$861 billion
This makes SGX nearly twice as big as the second largest
stock exchange in ASEAN, i.e. The Malaysia
Primary competitor - Hong Kong whose market is fourtimes as big as Singapore
Regulatory bodies - MSA Monetary Authority ofSingapore), Securities and Futures Act SFA)and FinancialAdvisers Act FAA)
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The outstanding volume of corporate debt increased
year-on-year by 9%. SGD debt issuances dipped
marginally by 4% y-o-y in 2011 while non-SGD debt
issuances expanded by 110%
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The Singapore Exchange (SGX) - a merger of the Stock Exchangeof Singapore (SES) and the Singapore International MonetaryExchange Limited (SIMEX)
About 40% of SGXs listings are foreign, spanning regions such as
Asia Pacific, particularly in South East Asia, and further afield inEurope and America
By FY 2013, the total market capitalisation of listed equities on SGXis USD $765 billion, which comprise more than 1% of the worlds
market capitalisation. This ranks SGX in 8th and 19th position inAsia Pacific and globally, respectively
0
500
1000
1500
Singapore
(SGX)
India (BSE)
7651263
Market Cap USD bn)
Market Cap (USD bn)
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Money Market regulated by Monetary Authority of Singapore (MAS)
MAS does not control the monetary system by monitoring interest rates.Instead, it manages the Singapore dollar (SGD) exchange rate against a trade-weighted basket of currencies of Singapore's major trading partners and
competitors.
Singapore benchmark interest rate is 0.07% and has averaged 1.68% from1988-2014 while Indias current interest rate is 8%
Monetary policy in Singapore is reviewed on semi-annual basis (April and Oct)while in India it is done quarterly
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The primary objective of Singapores monetary policy is price
stability for
sustainable economic growth. Since 1981, Singapores
monetary policy has been centered on the exchange rate
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CurrencyIssuance
MAS maintainsa stock ofcurrency notesand coins and
issues to orredeems fromthe banks asper the demandfrom customers
Central ProvidentFund (CPF)
Singaporesmandatorydefinedcontribution
pension fundscheme
GovernmentFund Transfers
MAS providesbanking andfinancialservices to the
government
InterventionOperations
Theseoperations, mayincrease ordecrease the
amount ofSingaporedollars in thebanking systemand affect theliquidity levels inthe system
MAS does not target any level of interest rates; it aims merely to ensure
that there in enough liquidity in the system
Managing Liquidity Levels: Banks are required to maintain a MinimumCash Balance (MCB) of certain percentage of their lagged qualifyingliabilities on a two-week average basis (can be equated to CRR)
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Intraday Liquidity Facility
The facility is open from 9amto 5pm. It provides marketparticipants with liquidity forsettlement purposes andhelps to smooth out theirintraday funding needs
Standing Facility
A two-sided discount windowthat allows MEPS (MASElectronic Payment System)participants to depositSingapore dollar funds with orborrow Singapore dollarfunds against eligiblecollateral from MAS on anovernight basis
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Highly developed banking system providing services ranging from consumer
banking and asset management to foreign exchange, investment bankingand specialized insurance services
Around 200 banks
Assets of domestic banks $2trillion(Dec 2013)
Emerging as one of the strongest in the world
FACTORS RESPONSIBLE FOR SUCCESS OF THE BANKING INDUSTRY
1.Liberalisation of the banking sector
2.Local banks strengthening their regional presence with M&A
3.Expansion of foreign banks
4.Development of innovative products & competitive pricing models
5.Strict Banking laws, Tax Friendly policies6.Sophisticated banking services
Top 3 Banks are :DBS, Overseas- Chinese Banking Corporation (OCBC)and United Overseas Bank (UOB)
Ranked as one of the most open economies for international trade and
investment and one of the most competitive countries in the world
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Comply with Banking CG Regulations Comply on a comply-or-disclose basis with the MASs Guidelines on Corporate
Governancefor Banks, Financial Holding Companies and Direct Insurers whichare incorporated in Singapore (CG Guidelines)
Banks incorporated in Singapore that are also listed on the Singapore Exchangemay, as listed companies, also comply, on a comply-or-disclose basis, with therequirements of the Code of Corporate Governance 2012, in respect of theirannual reports for financial years commencing after 1 November 2012
CAPITAL REQUIREMENTS
Adopted BASEL3 norms in 2013
From 1 Jan 2013:-
1. a minimum Common Equity Tier 1 (CET1) capital adequacy ratio (CAR) of4.5%
2. a minimum Tier 1 CAR of 6%
3. a minimum Total CAR of 10%
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Singapore serves as a base for insurance andreinsurance firms to write regional and international risks
Industry matured in terms of product offerings
Witnessed a growth of 28% in 2013
Insurers may conduct insurance activities in Singapore
as registered insurers, authorized reinsurers or foreigninsurers
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