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Source: www.gov.sg |
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DPM Lee Hsien Loong,
Chairman MAS,
spoke at the Association of Banks in Singapore's 31st Annual Dinner, 17 June 2004
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It
is now three years since the last package of banking liberalisation measures
in 2001.
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Having
assessed the state of the industry, MAS has decided to take a few further
steps to liberalise the banking industry.
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These
are incremental adjustments to the earlier major liberalisation packages:
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a. Firstly, from 1 January 2005,
QFBs will be permitted to establish up to 25 service locations from the
existing 15.
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The 25 locations can either be brick-and-mortar
branches or offsite ATM locations. With 6 QFBs permitted to share ATMs
amongst themselves, this could result in a QFB shared ATM network of about 150
locations across Singapore. This provides QFBs with significant scope
for expanding their presence in the domestic market.
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b. Secondly, MAS is prepared to
grant a limited number of new Wholesale Bank (WB) licences to applicants that
meet our admission requirements.
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c. Finally, QFBs will with
immediate effect be allowed to negotiate with the local banks on a commercial
basis to let their credit card holders obtain cash advances through the local
banks' ATM networks.
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Singapore now has one of the most
liberal banking environments in Asia. However, over time, as the
industry changes, we must be ready to liberalise further. MAS will
reassess the environment before deciding on any further measures.
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While it is still too early to
make a final judgment, banking liberalisation has so far achieved its aim of
bringing about greater competition.
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It has fostered the consolidation of the local
banks, which might otherwise have taken much longer. The overall market
shares of local and foreign banks have not changed drastically, but there has
been an all-round qualitative improvement which has enhanced the vibrancy of
Singapore's financial sector.
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The liberalisation measures and
reforms of the last few years have set the financial sector on a firm
foundation.
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However, we cannot afford to rest
on our laurels. Challenges as well as opportunities exist for both the
banking industry and the financial sector as a whole. We must identify
and respond to them, in order to keep the financial sector dynamic and
competitive.
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Full text of speech
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Source: Excerpted from Monetary
Authority of Singapore (MAS) News Release 17 Jun 2004
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Qualifying Full Banks can open up to 25 service locations from Jan 2005
