Singapore MAS Increases Deposit Insurance Coverage Per Depositor from S$75,000 to S$100,000 Starting April 2024, Increasing Depositors Coverage from 89% to 91% of Account Holders
23rd September 2023 | Hong Kong
Singapore central bank Monetary Authority of Singapore (MAS) has announced to increase the deposit insurance coverage per depositor from S$75,000 to S$100,000 starting April 2024, increasing the depositors coverage from 89% to 91% of account holders. Earlier in June 2023, Singapore MAS released a consultation paper to increase deposit insurance coverage in Singapore per depositor from S$75,000 to S$100,000, with 91% of depositors will be fully insured in new proposal which was last reviewed in 2019 with increase from S$50,000 to S$75,000. More info below:
” Singapore MAS Increases Deposit Insurance Coverage Per Depositor from S$75,000 to S$100,000 Starting April 2024, Increasing Depositors Coverage from 89% to 91% of Account Holders “
Singapore MAS Released Consultation Paper to Increase Deposit Insurance Coverage Per Depositor from S$75,000 to S$100,000, 91% of Depositors Fully Insured Which was Last Reviewed in 2019 with Increase from S$50,000 to $75,000
27th June 2023 – Singapore central bank Monetary Authority of Singapore (MAS) has released a consultation paper to increase deposit insurance coverage in Singapore per depositor from S$75,000 to S$100,000, with 91% of depositors will be fully insured in new proposal which was last reviewed in 2019 with increase from S$50,000 to S$75,000. Singapore MAS: “The Monetary Authority of Singapore (MAS) today published a public consultation paper on proposals to increase deposit insurance (DI) coverage per depositor to S$100,000, and to improve the clarity and operational efficiency of the DI Scheme. MAS is proposing to increase DI coverage from S$75,000 to S$100,000 per depositor per DI Scheme member. The proposed increase will ensure that the vast majority of smaller depositors continue to be fully covered, keeping pace with the growth in average deposit balances. The proposed change will result in 91% of depositors being fully covered by deposit insurance and will ensure that DI continues to fulfil its primary objective of protecting small depositors in the event of a bank failure. This level of DI coverage strikes the appropriate balance between achieving a high degree of coverage for depositors and managing the cost of the coverage which, if too high, will ultimately be passed on to customers … … MAS is also proposing the following changes to enhance the operational efficacy of the DI Scheme: 1) provide MAS powers to stipulate a specific time when deposit balances are taken as final, so as to enhance clarity on how DI compensation is computed; and 2) introduce a time limit for DI compensation claims, to help keep administration costs low given the diminishing likelihood of claims over time. For more details, please refer to the consultation paper here . MAS invites interested parties to submit their comments on the proposals by 31 July 2023.
Ho Hern Shin, Deputy Managing Director (Financial Supervision), MAS: “MAS’ proposals are not in response to the stresses faced by some banks abroad earlier in the year. The key to ensuring a safe and resilient banking system is through pre-emptive safeguards, meaning sound regulation and rigorous supervision by MAS, and effective governance and risk management by banks themselves. DI complements these safeguards by providing a safety net for small depositors in the event banks were to fail. The DI safety net helps to provide confidence to small depositors but is no substitute to sound risk management and effective supervision.”
Singapore MAS Released Consultation Paper to Increase Deposit Insurance Coverage Per Depositor from S$75,000 to S$100,000
27th June 2023 – The Monetary Authority of Singapore (MAS) today published a public consultation paper on proposals to increase deposit insurance (DI) coverage per depositor to S$100,000, and to improve the clarity and operational efficiency of the DI Scheme.
MAS is proposing to increase DI coverage from S$75,000 to S$100,000 per depositor per DI Scheme member. The proposed increase will ensure that the vast majority of smaller depositors continue to be fully covered, keeping pace with the growth in average deposit balances.
The proposed change will result in 91% of depositors being fully covered by deposit insurance and will ensure that DI continues to fulfil its primary objective of protecting small depositors in the event of a bank failure. This level of DI coverage strikes the appropriate balance between achieving a high degree of coverage for depositors and managing the cost of the coverage which, if too high, will ultimately be passed on to customers.
MAS is also proposing the following changes to enhance the operational efficacy of the DI Scheme:
- provide MAS powers to stipulate a specific time when deposit balances are taken as final, so as to enhance clarity on how DI compensation is computed; and
- introduce a time limit for DI compensation claims, to help keep administration costs low given the diminishing likelihood of claims over time.
For more details, please refer to the consultation paper here . MAS invites interested parties to submit their comments on the proposals by 31 July 2023.
Please refer to MAS’ response to Parliamentary Question on 8 May 2023 here .
DI Scheme members are full banks and finance companies as specified in Section 5 of the Deposit Insurance and Policy Owners’ Protection Schemes Act 2011.
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