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Nov 28, 2008

Ministerial Statement: Why Singapore Government Guarantee on Deposits


Ministerial Statement: Why Singapore Government Guarantee on Deposits

A Ministerial Statement was given by Mr Lim Hng Kiang, Minister for Trade & Industry and Deputy Chairman, Monetary Authority of Singapore on Government Guarantee on Deposits.

This is posted on the Monetary Authority of Singapore's website.

Mr Lim Hng Kiang gave a ministerial statement on why the Singapore Government announced a guarantee on deposits of individuals and non-bank customers with banks, finance companies and merchant banks in Singapore until 31 December 2010.

In his statement, several reasons were put forward to explain the Government Guarantee on deposits.

First, the guarantee ensures a level international playing field for banks in Singapore.

Second, the guarantee bolsters the confidence that the public has in Singapore’s financial system.

Third, financial services are an important pillar of Singapore’s economy, accounting for 12% of GDP and 5% of Singapore's employment.

Fourth, this financial crisis is not confined to any country or region, but is a global one.

Singapore’s guarantee of deposits demonstrates confidence in the soundness of the financial system, and helps contribute towards restoring confidence in the international financial system.

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