Around 89% of depositors in the country are fully insured under the Deposit Insurance System, according to Minister of State for Trade and Industry Alvin Tan.
This scheme is administered by Singapore Deposit Insurance Corporation or SDIC. It insures Singapore dollar deposits held at a full bank or finance company in Singapore. If the finance company or bank goes under, the SDIC will pay up to S$75,000 per depositor per institution.
Amid the deposit growth in Singapore, the percentage of insured depositors fell to 89%. According to Tan, MAS recently concluded its latest regular review of the scheme, including coverage limits and ways to ensure efficiency. The regulator will present these proposals in June 2023.
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“Our principal objective should be to ensure that the pre-emptive safeguards … are in good shape.”
These safeguards include proactive cross-border cooperation, sound regulation, rigorous supervision, and effective government and risk management by banks.
Tan also added that the nominal coverage limit will be adjusted from time to time.
“This adds naturally to the banks’ overall costs, which they will have to manage themselves and then sometimes also pass on these costs to customers given that they are commercial enterprises.”
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