- Joined
- Jan 5, 2015
- Messages
- 84,276
- Reaction score
- 10,137
Sometime this year, SDIC will revise the $50k upwards, perhaps to $75k.
MAS have stricter requirements for banks that are labelled
DSIB - Domestic Systematically Important Banks.
The 3 local banks are all in it.
As for foreign banks,
Citi is definitely one of them, along with maybank, stanchart, hsbc
http://www.todayonline.com/business/mas-proposes-increasing-deposit-insurance-coverage-s75000
The Monetary Authority of Singapore (MAS) on Friday (Aug 4) released a public consultation on its proposals to enhance the Deposit Insurance Scheme, which insures Singapore dollar deposits held at a full bank or finance company in Singapore.
A key proposal is to increase deposit insurance coverage from the current S$50,000 to S$75,000 per depositor. The deposit insurance coverage limit was last raised from S$20,000 to S$50,000 in 2011, which, at the time, fully covered more than 90 per cent of insured depositors.
Since then, with the growth in deposit base, the percentage of fully covered insured depositors has fallen to 87 per cent. The proposed coverage limit of S$75,000 will restore the percentage of fully insured depositors to above 90 per cent, in line with international norms, the MAS said.
Mr Anurag Mathur, head of retail banking and wealth management, HSBC Bank Singapore, said: “The proposed MAS changes to the Deposit Insurance Scheme are timely as they reflect the growing affluence in this region. We believe this move will further lend confidence to Singapore’s financial system and the banks operating here as it will offer greater protection to depositors.”
ADVERTISEMENT
In 2006, MAS announced the establishment of the Singapore Deposit Insurance Corporation (SDIC) to administer the deposit insurance scheme and manage the deposit insurance fund. This followed the enactment of the Deposit Insurance Act in 2005.
The deposit insurance scheme will provide compensation to individuals and charities for the first S$20,000 of their Singapore dollar deposits, net of liabilities, in the event that their bank or finance company fails. The scheme compensates depositors through a fund built up from contributions by full banks and finance companies. SDIC conducts public education on the deposit insurance scheme and issues rules on the operational aspects of the scheme.
A Deposit Insurance Fund was established from premium contributions of deposit insurance scheme members for compensation to insured depositors in the event of a failure of a scheme member. The Deposit Insurance Fund is invested in safe and liquid assets such as securities issued by the Singapore Government or the MAS, deposits with the MAS, any debenture or debt security issued by Singapore Sukuk and other assets approved by the Finance Minister.
Deposit insurance scheme members pay annual premium contributions to the Deposit Insurance Fund. The premiums levied on member institutions are differentiated according to the risk they pose to the Deposit Insurance Fund. These risk-based premiums are charged to member institutions as a percentage of the amount of insured deposits they hold, subject to a minimum annual premium of S$2,500.
The MAS proposes to achieve the targeted Deposit Insurance Fund size of 30 basis points of total insured deposits in a progressive manner. The plan is to extend the build-up period of the Deposit Insurance Fund from 2020 to 2028, and to revise the annual premium rates levied on full banks and finance companies from 2.0-7.0 basis points to 2.5-8.0 basis points.
Interested parties can give their views and comments on the proposals contained in the consultation paper. The public consultation will end on Sept 4.