|
 |
|
Source:
www.mas.gov.sg |
|
Launch of Deposit Insurance Scheme in Singapore |
|
|
|
|
The Monetary Authority of Singapore (MAS)
and the Singapore Deposit Insurance Corporation (SDIC) today (28 Mar
2006) announced that the deposit insurance scheme will commence on 1
April 2006. |
|
This follows the enactment of the Deposit
Insurance Act in 2005. |
|
From 1 April, the deposit insurance scheme
will compensate individuals and charities for the first $20,000 of their
Singapore dollar deposits in standard savings, current and fixed deposit
accounts, net of liabilities, in the event that their bank or finance
company fails. |
|
The scheme compensates depositors through a
fund built up from contributions by full banks and finance companies.
Full banks and finance companies will pay their first premium
contributions into the fund on 3 April 2006. |
|
|
|
SDIC, a separate entity incorporated as a
company limited by guarantee under the Companies Act, will administer
the deposit insurance scheme and manage the deposit insurance fund. |
|
SDIC Chief Executive Officer, Ooi Sin Teik,
said: "The deposit insurance scheme is designed to safeguard the savings
of small depositors. The scheme represents another layer of protection
to complement the role of prudent bank management and MAS supervision." |
|
"Although Singapore is well respected for
the stability and robustness of its financial sector, experience
elsewhere has shown that having an explicit guarantee in place will
provide certainty and confidence to depositors." |
|
Mr Ooi added that the SDIC is in the process
of publishing a consumer guide on deposit insurance to be distributed
through bank branches. It is also setting up a website to inform and
educate the public on the scheme. |
|
Source:
www.mas.gov.sg Press Release 28
Mar 2006 |
Deposit Insurance Scheme launched in Singapore
