Singapore: Financial Sector Assessment Program; Technical Note-Crisis Management, Resolution, and Safety Nets

International Monetary Fund

No 2019/226, IMF Staff Country Reports from International Monetary Fund

Abstract: This technical note on Crisis Management, Resolution, and Safety Nets on Singapore highlights that the resolution tools are well designed, with the exception of bail-in powers; however, steps are still needed to operationalize the resolution plans. The note reviews current practices, considering international best practice principles as outlined in the Financial Stability Board’s Key Attributes for Effective Resolution of Financial Institutions and the International Association of Deposit Insurers’ Core Principles Effective Deposit Insurance Systems. Monetary Authority of Singapore currently develops resolution plans for Domestic Systemically Important Bank only. The resolution plans for each institution must be reviewed for both internal consistency and cross-institutional consistency. Some extension of resolution planning should be considered. The funding arrangements for resolution aim at limiting public sector exposure to loss. Losses will be first borne by equity holders and unsecured subordinated creditors. When additional funds are required, the deposit insurance fund, built by ex-ante premiums from members, can be used to support the resolution of members on an equivalent cost basis.

Keywords: ISCR; CR; resolution plan; bank resolution; resolution strategy; central bank; Resolution authority; resolution tool; MAS-People's Bank of China; MAS exercise; MAS Intraday Liquidity Facility; Bank resolution framework; Crisis resolution; Crisis management; Bridge bank; Global (search for similar items in EconPapers)
Pages: 32
Date: 2019-07-15
New Economics Papers: this item is included in nep-ias and nep-sea
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