MAS Publishes Report on the Financial Stability Review for 2018
MAS published the results of its financial stability review for 2018. The intention of the review is to contribute to a better understanding of issues affecting Singapore’s financial system among market participants, analysts, and the public. The report on financial stability review offers an analysis of the financial sector in Singapore, also focusing on risks in the external environment and reviewing the corporate and household sectors.
MAS conducts regular assessments of the financial system in Singapore, which includes identification of the potential risks and vulnerabilities and a review of the ability of the financial system to withstand potential shocks. The following are the key highlights of the review:
- Risks to global financial stability have increased, amid tighter financial conditions and trade tensions. Tightening global financial conditions have caused capital outflows from the region and could create further pressures on regional currencies and the debt-servicing abilities of sovereigns, corporates, and households.
- The country's banking system, corporate sector, and household fundamentals remain resilient. The banking system remains resilient, despite increased uncertainty. MAS assesses that domestic credit growth remains in line with the economic conditions and does not observe any broad-based domestic credit overheating at this juncture. Hence, MAS will maintain the countercyclical capital buffer (CCyB) at 0%.
- Looking ahead, corporates, banks, and households in Singapore need to guard against rising headwinds. The latest stress tests of MAS across the banking, corporate, and household sectors indicate that the overall system is resilient. Nonetheless, continued vigilance is warranted, as the likelihood of external shocks from tighter financial conditions and of materialization of trade tensions has increased, which, in turn, raises the risks to financial stability.
Keywords: Asia Pacific, Singapore, Banking, Insurance, Securities, CCyB, Stress Testing, Financial Stability Review, MAS
Featured Experts
Emil Lopez
Credit risk modeling advisor; IFRS 9 researcher; data quality and risk reporting manager
James Partridge
Credit analytics expert helping clients understand, develop, and implement credit models for origination, monitoring, and regulatory reporting.
Nihil Patel
Data scientist; SaaS product designer; credit portfolio analyst and product strategist; portfolio modeler; correlation researcher
Previous Article
Luis de Guindos of ECB on Next Steps for Global Financial RegulationRelated Articles
BIS and Central Banks Experiment with GenAI to Assess Climate Risks
A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe
Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures
Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.
Singapore to Mandate Climate Disclosures from FY2025
Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
EBA Proposes Standards Related to Standardized Credit Risk Approach
The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
ECB to Expand Climate Change Work in 2024-2025
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.