The Monetary Authority of Singapore ("MAS") recently published its Consultation Paper on Proposed Enhancements to the Deposit Insurance Scheme in Singapore on 27 June 2023 ("Consultation Paper"). In its Consultation Paper, the MAS has proposed to increase the deposit insurance ("DI") coverage per depositor to S$100,000, and to improve the clarity and operational efficiency of the DI Scheme.
MAS is proposing to increase DI coverage from S$75,000 to S$100,000 per depositor with effect from 1 April 2024. The proposed increase will ensure that the vast majority of smaller depositors continue to be fully covered, keeping pace with the growth in average deposit balances. The proposed change will result in 91% of depositors being fully covered by deposit insurance and will ensure that the DI Scheme continues to fulfil its primary objective of protecting smaller depositors in the event of a bank failure. MAS is also proposing to improve the clarity and operational efficiency of the DI Scheme through, among others, clarifying the computation of insured deposits and excluded amounts, providing greater flexibility on the mode of DI compensation to depositors and introducing a time limit for depositors to claim DI compensation. The Consultation Paper can be accessed here.
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