SINGAPORE – The Monetary Authority of Singapore (MAS) asked on Friday (Aug 4) for public feedback on proposals to enhance the deposit insurance scheme.
The insurance coverage plan now safeguards deposits of approximately $50,000 in banks and financing firms.
Singapore dollar-denominated deposits, such as those kept in a cost savings, fixed deposit or bank account, are covered under it.
An essential proposition is to raise protection from $50,000 now to $75,000 per person in a bank or finance company.
The coverage limit was last raised from S$ 20,000 to S$ 50,000 in 2011. Back then, the relocation totally covered more than 90 percent of those guaranteed.
As the deposit base has grown throughout the years, stated the MAS, just 87 per cent of those insured are now totally covered.
The brand-new limitation of S$ 75,000 “will bring back the portion of totally guaranteed depositors to more than 90 per cent, in line with international standards”, said the MAS.
The MAS proposes to accomplish the targeted deposit insurance fund size of 30 basis points of overall insured deposits in a progressive manner. The strategy is to extend the build-up duration of the fund from 2020 to 2028.
It will also raise the annual premium rates imposed on full banks and financing business for the deposit insurance coverage from 2.0-7.0 basis indicate 2.5-8.0 basis points.
Members of the interested and public celebrations have up until Sept 4 to provide their views and comments on the propositions.