As Singapore's central bank, MAS aims to promote sustained non-inflationary economic growth, and a sound and progressive financial centre

Conduct Monetary Policies

Promote Singapore as a financial centre to the world

Supervise and regulate the banks

Issue currency

​Establishment of specific rules for Financial Institutions by creating and applying legally enforceable rules such as legislations, directions and notices.

Outcome Focused

MAS has to uphold sound regulation of a high standard and exercise appropriate judgment to ensure good regulation outcomes can be achieved.

Shared Responsibility

Good regulatory outcomes are most effectively achieved when all stakeholders - MAS, financial institutions, investors and consumers, each taking on specific responsibilities for and shared ownership.

Risk Appropriate

MAS should be able to exervise supervisory judgment where justifiedin the particular circumstances of an inpidual financial institution or transaction.

Responsive to Change and Cycles

Regulatory framework has to be reviewed and updated to keep pace with changes in the industry, technological innovation and as new risks emerge.

Impact Sensitive

Regulation should be designed with due regard to its market and cost impact so that it is not unduly burdensome whilst maintaining a high standard consistent with established international standards and practices.

Clear and Consistent

Regulation should be clear so that financial institutions have certainty and predictability as to their legal obligations.

MAS

Regulatory 

Instruments

Act

Statutory laws under MAS' purview  which are passed in parliament and have force of law.

e.g. Banking Act

Subsidiary Legislation

Provisions of an Act which are spelt out in greater detail and have legal effect.

e.g. Banking and Charge Card Regulations

Directives / Notices

Detail specific instructions given to banks to ensure adherence of the specific regulation and have legal effect.

e.g. Notice 626 - Prevention of Money Laundering and Countering Financing of Terrorism

Guidelines / Codes / Circulars / Policy Statements

Best practices which largely do not have legal effect.

e.g. Code of Conduct for Credit Rating Agency

Did You Know?

A bank run occurs when many customers of a bank withdraw their deposits due to fear of the bank's probability of bankruptcy. 

In extreme cases, the bank may not have sufficient funds to cover the withdrawals.

Northern Rocks main businesses were collecting deposits and disbursing home loans in UK.

In the mid 2000s, it started to engage in short-term landing. When subprime market showed signs of stress, Northern Rock started to run out of cash.

Media ran reports of Northern Rock's liquidity difficulties.

On 13 September 2007, the UK witnessed its first bank run in 150 years.

Did You Know?

Global Financial Crisis (GFC), also commonly known as sub-prime crisis, was triggered by a series of failures of the financial institutions following the collapse of property markets and short-term loan markets.

While September 2008 witnessed the near failure of AIG, the federal takeover of Fannie Mae and Freddie Mac, the defining moment of GFC is Lehman Brothers' bankruptcy.

GFC triggered the worst global economic crisis in 2008/2009.

Did You Know?

Singapore, a global financial centre and key trading hub, will inevitably be exposed to money laundering (ML) and terrorist financing risk (FT).

Thus, MAS has put in place robust preventive measures such as Notice 626 to combat ML/FT risks. Banks, at the front line, must remain vigilant to prevent Singapore banks from being accessory to these financial crimes.