Question

Pls do not handwrite the answer, this is for easy reading

Question 1C:-

Develop arguments about how the MAS (Monetary Authority of Singapore) could manage the conflict in its dual roles of regulating the financial market as well as promoting Singapore as an international financial centre.

Pls refer to the link :http://www.mas.gov.sg/News-and-Publications/Speeches-and-Monetary-Policy-Statements/Speeches/2018/MAS-Annual-Report-201718.aspx

http://www.mas.gov.sg/News-and-Publications/Speeches-and-Monetary-Policy-Statements/Speeches/2018/Financial-Regulation.aspx

http://www.mas.gov.sg/News-and-Publications/Speeches-and-Monetary-Policy-Statements/Speeches/2018/The-Future-of-Banking.aspx

Answer 1

The Monetary Authority of Singapore (MAS) regulates the financial markets through working closely with the boards of the financial institutions. The key role of MAS is the support to the effective management in these institutions. MAS also play an important role in mitigation of risks taken by the financial institutions. MAS take the measures to control the excessive risks by the institutions which may negatively impact the growth of the economy and pass up the moral hazards.

MAS promote financial administration and various initiatives to foster the development of the financial markets. The Monetary Authority of Singapore has close supervision for the financial sector of the economy including banking, insurance, financial institutions. It also monitors the financial institutions to have vigorous system for protection against money laundering and other criminal financing activities. MAS have zero tolerance policy against the same. MAS take enforcement actions against the financial institutions which breaches the policies of MAS.

MAS has mission of promoting Singapore as the international financial centre. This is done by working in partnership with the private sector. The anti money laundering measures also supports the aim of MAS for becoming global financial centre. MAs has maintained high standards of supervision both domestic and at international level. The financial institutions are supervised across the industry as well as geographical basis. Also, MAS has tighter supervisory control for the weak institutions in which the risk is more as per the risk profile. The regulations are lenient for the risk focussed institutions.

Hence, MAS works for both the roles and is successful for strengthening the regulations of financial markets and also works for promoting Singapore as international financial centre.