The Monetary Authority of Singapore (MAS) has announced that Singapore will undergo the International Monetary Fund's (IMF) Financial Sector Assessment Programme (FSAP) this year.
The FSAP will assess the resilience of Singapore’s financial sector, the quality of MAS’ regulatory framework and supervision, and capacity of authorities to manage and resolve financial crises.
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. These systemically-important financial centres are required to undertake a financial stability assessment every five years.
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 crises and resolving banks in an orderly manner.
The IMF FSAP delegation will visit Singapore in November 2018 and February 2019 to perform the assessment. The FSAP report will be completed and published in 2H2019.
This will be Singapore’s third FSAP assessment. 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, said the MAS.