Saturday, April 20, 2019

What Steps Have Been Taken To Enhance The Stability Of The Financial Essay

What Steps Have Been Taken To Enhance The Stability Of The pecuniary System In capital of Singapore What Are The Main Steps That Remain To Be Taken - canvass ExampleFSAPs argon designed to assess the perceptual constancy of the financial system as a full-length and not that of individual institutions. They have been developed to help countries identify and remedy weaknesses in their financial sphere of influence structure, thereby enhancing their resilience to macroeconomic shocks and cross-border contagion.FSAPs do not cover risks that are specific to individual institutions such(prenominal) as asset quality, operational or legal risks, or fraud. The views expressed in this document are those of the staff team and do not necessarily reflect the views of the government of Singapore or the executive director Board of theSingapore the name inspires respect and trust. Today, it is looked upon with awe by people from all over the world, two from developed nations and the developi ng world. It is considered as a role model by the Asian countries. This has been possible because of Singapores abiding and slightly conservative economy, which has withstood the test of economic downturns and sudden asset price declines.Singapores financial firmament, which is dominated by the banking sphere, remains robust despite a series of economic downturns and substantial asset price declines. even up when faced with a series of economic jolts and decline in asset price, the economy has stood on truehearted ground in the past few years. The local banks and insurance companies are endowed with huge capital letter and making considerable profits. Stress test results indicate that Singapores systemically classical banks and insurance companies could withstand further prodigious shocks.-Problem Statement What steps have been taken to conjure the stability of the financial system in Singapore What are the main steps that remain to be taken It would be our endeavour here to go bad the running of the financial system in Singapore, study the factors that contribute positively to it and also try to line up if anything else needs to be done to create a positive impact on the financial system.Singapores financial stability can be attributed in large to the smooth running and considerably organized set-up of the banks and their branches both(prenominal) local and foreign. The insurance sector also plays a major role in contributing to this stability as it is also capital rich and highly profitable. It has weathered three major shocks the Asian crisis in 1997-98 a sharp drop in electronics exports in 2000-01 (resulting in the worst recession sinceindependence) and the outbreak of severe acute respiratory syndrome in early 2003. This stability in the face of such downturns can be contributed to sound pecuniary and monetary policies, long-standing external current account surpluses, significant external assets and reserve positions, the healthy corporate sector high household wealth, and conservative financial regulatory and supervisory practices.ConceptualizationThe steps been taken to enhance the stability of the financial system in Singapore include the following1. Banks dominate the financial sectorLocal banks, which hold more than one half share of domestic banking assets, are profitable and well capitalized. They are also liquid, have enough back up for non performing asset exposures, and conservative in their management practices. The insurance sector, though contributes only 6% to the total assets of the system, too is well capitalized and doing good business. generalally important banks (including major foreign bank branches) and insurance companies have been shown to withstand major shocks under test conditions.2. Systemic liquidity is well managedThe Monetary Authority of Singapore

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