Monetary Authority of Singapore

Monetary Authority of Singapore (MAS) is the Central Bank of Singapore. The mission of the Central Bank is to ensure non inflationary economic growth and a healthy and vibrant financial centre.

 

The main responsibility of MAS is to be the Central Bank of Singapore, frame the monetary policy, issue currency, overview payment systems and serve as banking and financial agent to the Government.

 

Before 1970, the different monetary functions of a Central Bank were undertaken by several government departments and agencies. With increasing economic development and industrialization, Singapore felt the need for a well integrated banking and monetary environment. Thus in 1970 the Parliament passed the Monetary Authority Of Singapore Act, resulting in the creation of MAS on January 1st, 1971.MAS became the Central Bank of Singapore, responsible for regulating all aspects of monetary, banking and financials in Singapore. In April 1977, the Government brought the regulation of the Insurance Industry under the authority of MAS.

The Economic Policy Department (EPD) is responsible for devising monetary policy needed for sustained and non-inflationary economic development in Singapore. It monitors the progress of the domestic economy and undertakes analyses and forecast to sustain policy decisions. Over and above these functions, EPD does detailed study on challenges faced by the Singapore economy.

 

The Macroeconomic Surveillance Department (MSD) is responsible for the surveillance of the financial system to forecast emerging trends and probable risks. It also has the added responsibility of monitoring and evaluating developments in G3 and other regional economies and International Financial Markets.

 

The Reserve and Monetary Management Department (RMD) is responsible for two definite functions. The Monetary Management Division (MMD) in RMD is responsible for controlling Singapore's monetary policy by managing the exchange rate within its targeted policy band and undertakes periodic money market operations to manage liquidity in the banking system. The other responsibilities of MMD include issuing Singapore Government Securities (SGS), creating conditions for the development of SGS market and for investing MAS foreign reserves.MMD undertakes operations in important bond and currency markets.

 

The External Department (EXT) structures the development of MAS policies on International Monetary and financial issues, allowing MAS to play an important role in International Financial forum. Working in tandem with other Singapore government agencies, EXT propagates cooperation with other central banks, finance ministries and International Financial institutions. EXT's other functions include external communications including media relations.

 

The Financial Markets Strategy Department is concerned with the promotion of capital markets and treasury activities in Singapore.

 

The Capital Markets Department is responsible for supervising the performance of capital markets by way of the Securities and Futures Act, the Business Trusts Act and the Singapore Code on take over’s and mergers .It regulates the (i)working of securities, business trusts, REITs and collective investment schemes (ii) trading of securities and derivatives products (iii) securities and futures market operators and clearing houses (iv) the conduct of takeover transactions and (v) SGX as a listed entity. The CMD also oversees the implementation of civil penalty regime for market misconduct, CMD formulates and implements market and business conduct policies to achieve fair outcomes for depositors, investors and policyholders.

 

The Banking Supervision Department (BD) and the Complex Institutions Supervision Department (CI) are responsible for licensing and supervision of banks, merchant banks and finance companies.CI monitors the local financial groups. The two departments together are responsible for ensuring the stability and strength of Singapore's financial system by monitoring the safety and soundness of banks and other financial institutions.

The Insurance Supervision Department (ID) implements the Insurance Act and its primarily responsibility is to safeguard the policyholders interests.ID works in tandem with industry partners to encourage the implementation of best practices by the industry.

 

The Specialist Risk Supervision Department (SRD) is instrumental in providing financial and technology risk expertise necessary for MAS supervisory and regulatory functions and also to assess individual institutions and system wide risks.

 

The Corporate Services Department looks after logistics and administration. It is responsible for administrative support for events held by MAS, for tenancy, security and property and building related matters.

 

The main responsibility of currency department is the issuance and administration of the Currency Act. It is responsible for the quality of the Singapore currency in circulation and ensures supply of currency meets the demand. The department provides and receives notes and coins to and from banks.

 

It coordinates and monitors the implementation of human resource management policies. It is responsible for recruitment, evaluating performance, training and employee retention and formalizing a competitive remuneration package.

 

The Internal Audit Department (IAD) undertakes financial, operational and information systems audits of all MAS operations.IAD perform regular checks for compliance with policies, guidelines, laws and regulations and evaluates the authenticity of financial records.IAD also coordinates with other departments to review controls in new systems and business processes.

 

Finance Department
The Finance Department (FD) is the controlling authority for managing MAS financial resources. Its responsibility include control and budgeting of MAS assets/liabilities and the accounting, settlement, safe custody, risk management and performance evaluation of MAS global investments. FD also monitors the issuance of Singapore Government Securities (SGS) and the MAS Electronic Payment System (MEPS).It also maintains the current accounts of banks, International Monetary Organizations and Financial Institutions.