Singapore consumers enjoy the benefits of a sound banking system. Banks and finance companies licensed in Singapore are supervised by the Monetary Authority of Singapore (MAS). It is MAS’ aim to ensure the stability of the banking system in Singapore and to require financial institutions to have sound risk management systems and adequate internal controls.
However, MAS does not guarantee the soundness of individual financial institutions. Therefore, a Deposit Insurance Scheme has been set up to protect the core savings of small depositors in Singapore in the event a full bank or finance company fails.
What is deposit insurance?
"Deposit insurance protects depositors in the event a Scheme member fails. The Deposit Insurance Scheme compensates your savings up to a maximum of S$20,000."
How does the Deposit Insurance Scheme work?
"In the event a Scheme member that is covered under the scheme fails, the MAS will request the Singapore Deposit Insurance Corporation (SDIC) to step in. The SDIC will put its crisis plan into action. Affected depositors will be notified and arrangements will be made for depositors to be paid either by cheque or through accounts opened for them in another financial institution.
The SDIC will make the compensation from insurance premiums that Scheme members pay every year under the Deposit Insurance Scheme."
Singapore Deposit Insurance Corporation
http://www.sdic.org.sg/
List of Scheme Members
http://www.sdic.org.sg/scheme_members.html
Frequently Asked Questions
http://www.sdic.org.sg/faq.html
