10th July 2018
Monetary Authority of Singapore (MAS)
What is the Monetary Authority of Singapore (MAS)?
As Singapore’s central bank and financial regulator, it’s vital that financial institutions understand what the Monetary Authority of Singapore is, and how it functions…
MAS’ role on Singapore’s financial landscape is to not only regulate and supervise the financial sector but to promote and sustain economic growth. MAS is governed by a board of directors and chaired by Singapore’s Minister for Finance. As a government institution, MAS operates by a strict code of conduct and considers certain core values, including a commitment to professionalism, integrity, and fairness, of paramount importance.
In its regulatory capacity, MAS oversees every aspect of monetary policy, banking and finance in Singapore, including matters relating to the insurance industry. According to its mandate, MAS’ role as central bank involves:
- Conducting monetary policy, including issuing currency and overseeing payment systems.
- Serving as a financial agent and banker to the government of Singapore by providing it with facilities in which to deposit money, and to transact with international financial institutions, such as the World Bank.
- Conducting supervision of Singapore’s financial services, and surveillance of the country’s financial stability.
- Managing Singapore’s foreign reserves and assets.
- Developing Singapore’s status as an international financial center.
The role MAS plays in the economic and professional profile of Singapore is significant. The actions MAS takes to regulate and supervise the country’s financial landscape is a foundation of its reputation as an international business hub, and the esteem in which it is held by the international community.
MAS is committed to the implementation of financial technology in its effort to facilitate and promote economic growth. Supporting the Smart Nation initiative, MAS works to position Singapore as a regional FinTech leader by developing a strong talent pool, building an open architecture economy, reinforcing cyber-security measures, and creating a regulatory environment conducive to innovation.
MAS’ efforts to promote FinTech also involve the launch of its Industry Transformation Map – an effort to create over 3000 jobs in the financial services sector, and a further 1,000 specifically in FinTech.The mechanism by which MAS alters the value of the Singapore dollar involves a carefully compiled, and undisclosed, ‘basket’ of trading partner currencies. MAS aggregates the exchange rates of these currencies and uses this metric to set the optimal value of the Singapore dollar.
The currency ‘basket’ which MAS uses to set the value of its dollar is kept secret – a measure necessary to prevent the manipulation of international trade.
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