• The aim of MAS¡¯ risk-based
supervision is to foster the safety and soundness of financial
institutions and to promote transparency and fair dealing by financial
institutions in relation to their customers and counterparties,
contributing to the maintenance of a stable financial system.
• In seeking to meet its supervisory
objectives, MAS does not aim to prevent all failures. Through an
impact and risk model, MAS varies and calibrates the supervisory
attention paid to a financial institution according to its potential
to affect the achievement of MAS¡¯ supervisory objectives.
• MAS¡¯ approach to supervision requires
MAS, financial institutions and stakeholders to work closely
• The board and senior management play
the central role for proactive oversight and governance of a financial
institution¡¯s activities. MAS looks to the board and senior
management to address issues of supervisory concern and supports the
efforts of the institution to maintain an environment of sound risk
management and internal processes commensurate with the institution¡¯s
business activities and their risks.