Source: WE BANK

Unified supervision mode according to local conditions

Singapore adopts a unified supervision mode. The Monetary Authority of Singapore (MAS), established in 1971, is both a central bank and a supervision institution. It has very strong independence and authority. It takes into account both financial regulation and financial supervision. As an independent institution, it undertakes all financial supervision responsibilities and implements prudent supervision and behavioral supervision through the establishment of different functional departments. MAS's function is similar to that of the"one line and two sessions" in mainland China. It also uses interest rate, money supply, foreign exchange reserve and other means to regulate the national economy through interest rate policy, open market business operation, deposit reserve and other tools. Its financial supervision function is to supervise all financial departments, including banks, insurance and capital market intermediaries. Under the prudent policy, the Special Risk Department and the Macro Supervision Department are responsible for formulating capital supervision standards and prudent supervision policies, providing identification, tracking and response technologies and methods for supervision work, and detecting development trends and potential defects; Banking, insurance and capital market supervision departments are responsible for supervising and maintaining the operation and policy implementation of different types of financial institutions.

After the financial crisis in 2008, Singapore chose to implement looser policies on the basis of prudent supervision to optimize the allocation of financial resources. In terms of monetary policy, MAS eased export pressure by pushing the Singapore dollar to appreciate gradually, It not only lowered the slope of Singapore dollar trading range, but also signed a US $30 billion exchange agreement with the Federal Reserve in order to boost the domestic economy. At the same time, it encouraged banks to lend, lowered bank loan interest rates, raised the loan ceiling for small enterprises, lowered the loan risk of enterprises, and provided various tax incentives and subsidies to enterprises.

Singapore's centralized supervision mode and loose monetary policy conform to the needs of the comprehensive development of the local financial market, enhance the integrated protection of consumers, and reduce the friction cost and the obstacles of multiple supervision systems to financial innovation. This structure has greatly promoted the mixed operation of the financial industry, and has given full play to Singapore's geographical advantages, further enhancing its investment attraction and becoming one of the most innovative economies in Southeast Asia and even the Asia-Pacific region.