Monetary Authority of Singapore Annual Report 2010/2011

THE GLOBAL RECOVERY IS CONSOLIDATING		18

Modest Growth in the G3 amidst Uncertainties		18

Strong Growth in Asia ex-Japan was Underpinned by the Private Sector		19

Downside Risks in Financial Markets have Increased		19

Higher Energy Costs Push Up Inflationary Pressures		20

Singapore: Record Growth in 2010		20

Consumer Prices and Wages Remain Elevated		21

MONETARY POLICY		22

Box 1: The MAS Core Inflation Measure for Singapore		24

LIQUIDITY MANAGEMENT		26

Enhancing the Standing Facility		26

Enhancing the Repo Facility		26

PBC-MAS Bilateral Swap Facility		26

Box 2: Issuance of short term MAS bills		27

ENSURING SAFETY AND SOUNDNESS OF FINANCIAL INSTITUTIONS AND FINANCIAL SYSTEM		27

Prudential Supervision and Surveillance		27

Fostering a Sound and Reputable Financial Centre		27

Property Market Measures		28

Review of Deposit Insurance Scheme in Singapore		28

Insurance Resolution and Policy Owners' Protection		28

Review of Insurance Act		29

Enhancing Safeguards for Retail Customers		29

Enhancing Regulatory Regime for Fund Management Companies		30

Achieving Fair Dealing Outcomes		30

Enhancing Corporate Governance Standards		31

Conclusion of First Two Civil Penalty Cases		31

Box 3: The Representative Notification Framework		32

Enhancing Market Conduct		33

Audit Assurance		33

SINGAPORE AS AN INTERNATIONAL FINANCIAL CENTRE		33

Financial Sector Growth		33

Promoting Partnership Framework and Enhancing Infrastructure		34

Promoting Partnership Frameworks		34

Trading and Clearing Infrastructure		34

Box 4 : Private Banking Industry - Code of Conduct		35

Infrastructure for Long Term Growth		35

Raising Standards and Building Competencies		36

Deepening Competencies in Banking		36

Building Research Capabilities		36

ENHANCING STRATEGIC PARTNERSHIPS IN AN EVOLVING FINANCIAL LANDSCAPE		40

Enhancing Global Financial Stability and Regulatory Reform		40

Facilitating International Financial Discussions		41

Deepening International Cooperation		41

Strengthening Capital Markets Development and Regional Surveillance		42

Pursuing Closer Bilateral Engagements		43

Strengthening Cooperation with Industry Partners		43

Enhancing Payment Card Security		43

Financial District Security Programme (FDSP)		44

Addition of Primary Dealer		44

Partnership with Academia		44

Financial Conferences and Events		45

Box 5: MoneySENSE - Continued Efforts to Bring Financial Education to the Community		45

BUILDING HIGH PERFORMANCE TEAMS AND A STRONG MAS FAMILY		50

Expertise Development		50

MAS Academy		50

Attachment		50

Leadership Development		51

Young Professionals Programme		51

People Leadership Programme		51

Leadership Community Retreat		51

Coaching		51

Box 6 : Honing Specialist Knowledge - The Inaugural Trainer and Peer Group Awards		51

Engaging Staff		52

MAS Staff Seminar 2011		52

Recognising Our People		52

Service Appreciation Awards		52

National Day Awards		52

Risk Management and Infrastructure		52

Business Continuity Management (BCM)		52

Enterprise Risk Management		53

FOSTERING CLOSER TIES		53

Closer ties within MAS		53

Family Day 2011		53

Hobby Groups		53

Healthy Lifestyle		53

Closer ties with counterparts		54

Inter-Central Bank Games 2010		54

Closer ties with community		54

Charity Initiatives		54


FINANCIAL STATEMENTS		58


Financial Statement Highlights		58

Statement by Directors		59

Auditor's Report		60

Consolidated Statement of Comprehensive Income		62

Consolidated Balance Sheet		63

Consolidated Statement of Changes in Equity		64

Consolidated Cash Flow Statement		65

Statement of Backing of Currency in Circulation		66

Notes to the Consolidated Financial Statements		67


KEY ECONOMIC AND FINANCIAL STATISTICS		88


STATISTICAL ANNEX		92


A. MONETARY STATISTICS		92

B. FINANCIAL STRUCTURE		96

C. COMMERCIAL BANKS		98

D. FINANCE COMPANIES		103

E. MERCHANT BANKS		104

F. INSURANCE INDUSTRY		106

G. NON-BANK FINANCIAL INSTITUTIONS		107

H. DOMESTIC CAPITAL MARKET		108

I. ASIAN DOLLAR MARKET		109