Monetary Authority of Singapore

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Monetary Authority of Singapore
MAS logo
MAS logo
Headquarters 10 Shenton Way MAS Building, Singapore 079117
founding 1st January 1971
president Tharman Shanmugaratnam
country Singapore
currency

Singapore dollar

ISO 4217 SGD
Currency reserves US $ 377.4 billion (November 2019)
Base loan rate 5.35%
Website

www.mas.gov.sg

List of central banks

The Monetary Authority of Singapore (abbreviation: MAS; Chinese: 新加坡 金融 管理局; German: Singapore's currency authority ) is Singapore's central bank and authority for financial market regulation . It manages the various regulations related to money, banking, insurance, securities and the financial sector in general, as well as currency issuance.

history

The MAS was founded in 1971 to monitor the various monetary functions that are assigned to monetary and financial affairs. Before the MAS was founded, this task was carried out by various ministries and authorities. Due to the economic advancement of Singapore and the increasingly complex demands on the financial system, the Parliament passed the Monetary Authority of Singapore Act in 1970 , which led to the establishment of the MAS. In addition, the MAS was given authority as a bank in order to be able to carry out the tasks assigned to it. In April 1977 the government decided to also place the regulation of the insurance industry in the remit of the MAS. In addition, the regulatory role under the Securities Industry Act (1973) in 1984 fell to the MAS. Since the merger with the Board of Commissioners of Currency on October 1, 2002, MAS was also assigned the currency issue.

tasks

The MAS must act as the country's central bank, including conducting monetary policy. The issuing of the currency and the monitoring of the payment systems also fall within their remit. In addition, the MAS must act as the government's financial officer, administer the country's currency reserves and oversee financial services and financial stability.

Unlike other central banks, the MAS does not fulfill these tasks. Instead of influencing the liquidity in the system through interest rates, the MAS uses the exchange rate mechanism. More precisely, this happens through an intervention in the SGD market.

Cash in circulation

Since 2003, MAS has also had to take care of cash in circulation. In order to do justice to this task, it has the exclusive right to issue coins and banknotes. However, the design of the coins and banknotes is determined by the Monetary Policy Committee with the approval of the government.

Only cash that has come into circulation in this way has the status of legal tender within the country for all transactions, both public and private, without any restriction.

Currency stability

In order to maintain the financial stability of the currency and to prevent inflation, the MAS must regularly review the possible risks and weaknesses that may arise due to the development of the country or the global economy.

The results are recorded and published in the Financial Stability Review (FSR). The aim is to provide market participants, analysts and the general public with a better understanding of the financial system in Singapore.

Currency reserves

The administration of the currency reserves has been divided by the government into three different organizations, one of which is the MAS. Due to the fact that it is a central bank, the MAS is considered the most conservative of the three investment companies. The Financial Stability Reviews published by MAS are drawn up at regular intervals and provide information on how and to what extent the allocated reserves have been distributed.

A data template, the IWF Special Data Dissemination Standard (SDDS), is used for this. This shows both the capital within the country and the capital abroad. In addition, future increases or decreases are assigned to the respective positions.

Exchange rate system

The centering of the MAS on this system came about with the main aim that the promotion of medium-term price stability is a solid basis for sustainable economic growth. In order for this system to achieve this effect, three main features have been set which are to serve as guidelines.

  1. The Singapore dollar is managed against a basket of currencies from major trading partners.
  2. MAS operates a controlled pending regime for the Singapore dollar that allows the trade-weighted exchange rate to fluctuate within a predetermined policy.
  3. Exchange rate policy is reviewed regularly to make sure it is always in line with economic fundamentals.

The so-called macroeconomic reviews are also published together with the financial stability reports for verification purposes. This happens twice a year and serves as the basis for the monetary economy decisions of the MAS. These are available both online and in print.

Global cooperation

With Singapore's role as an important financial center in the region, the MAS must also appear globally. This is implemented through the membership of several important global organizations such as the International Monetary Fund (IMF), the World Bank (WB), the Financial Stability Board (FSB), the Bank for International Settlements (BIS) and international standardization bodies such as the Basel Committee on Banking Supervision (BCBS), the International Association of Insurance Commissioners (IAIS) and the International Organization of Securities Commissioners (IOSCO).

Close cooperation with other central banks is also required. This not only affects the surrounding countries, but also the European Central Bank and the American Central Bank .

List of chairmen

Since the founding of the MAS, the following people have held the position of Chairman:

Individual evidence

  1. ↑ Singapore Foreign Exchange Reserves . tradingeconmoics.com. Accessed December 12, 2019 (English)
  2. ↑ http://statutes.agc.gov.sg/aol/search/display/view.w3p;page=0;query=DocId%3A8cde6c10-335e-4415-b97a-62aa88a1be3f%20Depth%3A0%20Status%3Ainforce;rec = 0; whole = yes
  3. ↑ http://www.mas.gov.sg/Monetary-Policy-and-Economics/Monetary-Policy/Macroeconomic-Review.aspx

further reading

  • Birgit Kuhles: Intercultural Management of Western Banks in Southeast Asia Analysis and Concept Using the Examples of Singapore, Malaysia and Vietnam , Springer, 2002, ISBN 978-3-8244-7568-1 .
  • Sheng-Yi Lee: The Monetary and Banking Development of Singapore and Malaysia. NUS Press, 1990, ISBN 978-9971-69-146-2 .
  • Monetary Authority of Singapore: The Financial structure of Singapore. 1980, ISBN 978-9971-9913-0-2 .

Web links