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Hofmann, Christian --- "Shadow banking in Singapore" [2018] ELECD 362; in Chiu, H.-Y. Iris; MacNeil, G. Iain (eds), "Research Handbook on Shadow Banking" (Edward Elgar Publishing, 2018) 423

Book Title: Research Handbook on Shadow Banking

Editor(s): Chiu, H.-Y. Iris; MacNeil, G. Iain

Publisher: Edward Elgar Publishing

ISBN: 9781785362620

Section: Chapter 15

Section Title: Shadow banking in Singapore

Author(s): Hofmann, Christian

Number of pages: 30

Abstract/Description:

For a better understanding of the shadow banking issue in Singapore and its financial landscape in general, we must start with the role of the banks. Banks are the key financial institutions and are placed at the top of the financial sector hierarchy in Singapore. Their prominent role results from two factors. First, banks are the most strictly regulated financial institutions, and Singapore complies with (and selectively surpasses) the latest Basel standards. These strict regulatory requirements for banks result in the benefit that a banking licence replaces the need for other financial licences. For example, s 99(1) of the Securities and Futures Act (SFA) provides that banks licensed under the Banking Act do not need a capital markets services licence. Once licensed as banks, these institutions are permitted to engage in the full range of financial services including the typical activities of deposit-taking, lending and payment services that generally define a bank. Also, banks are permitted to manage their customers’ wealth, offer typical investment activities and insurance brokerage.