While silent on the fact that they basically take direction from HK!
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0><TBODY><TR>How MAS works to ensure stability
</TR><!-- headline one : end --><TR>Monetary stability, financial soundness and market conduct: It starts with vigilance </TR><!-- Author --><TR><TD class="padlrt8 georgia11 darkgrey bold" colSpan=2>By Ravi Velloor
</TD></TR><!-- show image if available --><TR vAlign=bottom><TD width=330>
</TD><TD width=10>
</TD><TD vAlign=bottom>
PHOTO: ZAOBAO
</TD></TR></TBODY></TABLE>
<!-- START OF : div id="storytext"--><!-- more than 4 paragraphs -->From his 29th-floor office, Monetary Authority of Singapore (MAS) managing director Heng Swee
Keat's view stretches over the harbour that made this island the entrepot centre connecting Asia and the wider world.
<TABLE width=200 align=left valign="top"><TBODY><TR><TD class=padr8><!-- Vodcast --><!-- Background Story --><STYLE type=text/css> #related .quote {background-color:#E7F7FF; padding:8px;margin:0px 0px 5px 0px;} #related .quote .headline {font-family: Verdana, Arial, Helvetica, sans-serif; font-size:10px;font-weight:bold; border-bottom:3px double #007BFF; color:#036; text-transform:uppercase; padding-bottom:5px;} #related .quote .text {font-size:11px;color:#036;padding:5px 0px;} </STYLE>Markets still jittery
'Looking ahead, there is considerable uncertainty in the global economic environment given the financial storm. Steep declines in stock markets worldwide reflect, in part, investors' anxieties over the negative impact on global growth as the 'second-round effects' of the financial crisis hit real economic activities. All around the world, financial market participants remain nervous and credit market conditions have not returned to normal.'
</TD></TR></TBODY></TABLE>The MAS tower's other side looks out on the financial district that has drawn investment bankers, fund managers and other experts who smoothen the global flow of money, their presence contributing a steadily rising share to national wealth.
As a regulator and central bank, MAS has to be both watchdog for the financial industry and watchtower for the larger economy.
And, especially at a time when the world is swept by a financial and economic crisis of unprecedented scale and speed, it is a role that calls for careful thought and deliberate action.
'Our foremost priorities are monetary stability, financial soundness and market conduct. And overall, the stability of the entire system,' explained Mr Heng, speaking on Friday evening shortly after Singapore and other Asian markets closed after another week of dramatic losses.
That role is not for the faint-hearted. Nor is it for those prone to hasty judgment or knee-jerk reflexes.
Every little move or comment is keenly absorbed by a skittish market looking for the tiniest cue to push up or beat down stocks, the Singdollar or bonds issued here. And at every step of the way, the island's larger interests have to be kept in mind, including, for instance, the less-educated folk who may have inadvertently put their trust in banks that sold them high-risk instruments.
'Our first job is to make sense of the changes happening around us,' said the Cambridge and Harvard-educated Mr Heng, who was permanent secretary at the Ministry of Trade and Industry before his current post.
'The second is to be very steadfast and deliberate in decision-making. Decisive, but never hasty or arbitrary. We have to be focused on the outcome that we want to achieve in every situation.'
It is for this reason that MAS was not the first Asian central bank to guarantee bank deposits on the island.
When European central bankers reached for the measure, there were no jitters about any Singaporean bank. Yet, MAS readied its own guarantee as a reserve measure.
Then, as first Australia and New Zealand, then Hong Kong, matched the moves in Europe, MAS had to act or risk seeing a flight of deposits to financial jurisdictions covered by state guarantees. And so Singapore made its own announcement on Oct 16.
=> Any more doubt why Sporns are treated like dirt class citizens in their own cuntry? Cos there's no competition! And the Familee is bent to ensure thia this will continue into perpetuity!
'We came out with a guarantee that we believe is sufficient to maintain the confidence of all depositors, yet prudent,' he said.
Now, part of MAS' attention is focused on ensuring that these guarantees do not distort the financial market.
In Australia, for instance, companies like GE Money have cut down on home and auto loans because cash has become more expensive - people have moved their money to the safety of guaranteed bank deposits. 'We have not seen that sort of dislocation in our market,' he said.
One less worry for the MAS.
Likewise, when the issue of structured products such as DBS High Notes 5 came up, the priority was to help investors resolve complaints and protect value. Teams of officers were assigned to assess the extent of the issue, the banks involved and the number of people affected. A process for resolving complaints was put in place.
'I understand that affected investors are anxious and looking for solutions,' he said. 'Unfortunately, I think some of the advice they are receiving is not helpful because it has generated anxiety and confusion.'
=> Still dun want to admit that the MAAss slow or non response is the cause of it all? Wanna shift blame to Sporns again? *Ptui*
His assurance to investors: If you have a genuine case of mis-selling, go ahead and launch a complaint. The process will work for you.
He is also firm that the more knowledgeable class of investors should take responsibility for their decisions.
Just three months ago, central bankers were focused on battling inflation. But with inflation easing and the financial crisis biting into the real economy, their attention is moving to protecting jobs (for FTrash?) and companies. In Singapore's case, that is best done by making it cheaper for overseas markets to buy made-in-Singapore goods.
=> While keeping cost of living pegged to USD150 oil?
Earlier this month, MAS adjusted monetary policy from a strengthening stance to 'neutral', a cue that it was prepared to see some easing of the currency's strength. Last Friday, the Singdollar, which had touched 1.346 to the US dollar on July 15, ended Asian trading at 1.506 to the greenback.
So will the Singdollar give up more strength as MAS moves to keep the island's exports competitive?
Mr Heng would not tell, pointing out that monetary policy's role is to provide price stability.
'We never comment on the level of the Singdollar,' he said. 'All I say is that our stance has been appropriate.'
While there is considerable anxiety in the global economic environment, Singapore has weathered setbacks before and this, too, will pass.
The domestic dollar market has functioned smoothly, financial systems are sound and strong economic fundamentals and regulatory standards will help weather the storm.
As a small, open economy, Singapore cannot be insulated from global developments. And so, not just MAS but everyone else - banks, companies, individuals - should maintain a high level of vigilance, he advised.
MAS, for its part, will stay focused on the smooth functioning of the money markets and the stability of the financial system.
'Together with other government policies targeted at individuals, households and businesses, this will allow the Singapore economy to be on a firm and sound footing for recovery when the outside environment stabilises.' [email protected]
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0><TBODY><TR>How MAS works to ensure stability
</TR><!-- headline one : end --><TR>Monetary stability, financial soundness and market conduct: It starts with vigilance </TR><!-- Author --><TR><TD class="padlrt8 georgia11 darkgrey bold" colSpan=2>By Ravi Velloor
</TD></TR><!-- show image if available --><TR vAlign=bottom><TD width=330>
</TD><TD width=10>
PHOTO: ZAOBAO
</TD></TR></TBODY></TABLE>
<!-- START OF : div id="storytext"--><!-- more than 4 paragraphs -->From his 29th-floor office, Monetary Authority of Singapore (MAS) managing director Heng Swee
Keat's view stretches over the harbour that made this island the entrepot centre connecting Asia and the wider world.
<TABLE width=200 align=left valign="top"><TBODY><TR><TD class=padr8><!-- Vodcast --><!-- Background Story --><STYLE type=text/css> #related .quote {background-color:#E7F7FF; padding:8px;margin:0px 0px 5px 0px;} #related .quote .headline {font-family: Verdana, Arial, Helvetica, sans-serif; font-size:10px;font-weight:bold; border-bottom:3px double #007BFF; color:#036; text-transform:uppercase; padding-bottom:5px;} #related .quote .text {font-size:11px;color:#036;padding:5px 0px;} </STYLE>Markets still jittery
'Looking ahead, there is considerable uncertainty in the global economic environment given the financial storm. Steep declines in stock markets worldwide reflect, in part, investors' anxieties over the negative impact on global growth as the 'second-round effects' of the financial crisis hit real economic activities. All around the world, financial market participants remain nervous and credit market conditions have not returned to normal.'
</TD></TR></TBODY></TABLE>The MAS tower's other side looks out on the financial district that has drawn investment bankers, fund managers and other experts who smoothen the global flow of money, their presence contributing a steadily rising share to national wealth.
As a regulator and central bank, MAS has to be both watchdog for the financial industry and watchtower for the larger economy.
And, especially at a time when the world is swept by a financial and economic crisis of unprecedented scale and speed, it is a role that calls for careful thought and deliberate action.
'Our foremost priorities are monetary stability, financial soundness and market conduct. And overall, the stability of the entire system,' explained Mr Heng, speaking on Friday evening shortly after Singapore and other Asian markets closed after another week of dramatic losses.
That role is not for the faint-hearted. Nor is it for those prone to hasty judgment or knee-jerk reflexes.
Every little move or comment is keenly absorbed by a skittish market looking for the tiniest cue to push up or beat down stocks, the Singdollar or bonds issued here. And at every step of the way, the island's larger interests have to be kept in mind, including, for instance, the less-educated folk who may have inadvertently put their trust in banks that sold them high-risk instruments.
'Our first job is to make sense of the changes happening around us,' said the Cambridge and Harvard-educated Mr Heng, who was permanent secretary at the Ministry of Trade and Industry before his current post.
'The second is to be very steadfast and deliberate in decision-making. Decisive, but never hasty or arbitrary. We have to be focused on the outcome that we want to achieve in every situation.'
It is for this reason that MAS was not the first Asian central bank to guarantee bank deposits on the island.
When European central bankers reached for the measure, there were no jitters about any Singaporean bank. Yet, MAS readied its own guarantee as a reserve measure.
Then, as first Australia and New Zealand, then Hong Kong, matched the moves in Europe, MAS had to act or risk seeing a flight of deposits to financial jurisdictions covered by state guarantees. And so Singapore made its own announcement on Oct 16.
=> Any more doubt why Sporns are treated like dirt class citizens in their own cuntry? Cos there's no competition! And the Familee is bent to ensure thia this will continue into perpetuity!
'We came out with a guarantee that we believe is sufficient to maintain the confidence of all depositors, yet prudent,' he said.
Now, part of MAS' attention is focused on ensuring that these guarantees do not distort the financial market.
In Australia, for instance, companies like GE Money have cut down on home and auto loans because cash has become more expensive - people have moved their money to the safety of guaranteed bank deposits. 'We have not seen that sort of dislocation in our market,' he said.
One less worry for the MAS.
Likewise, when the issue of structured products such as DBS High Notes 5 came up, the priority was to help investors resolve complaints and protect value. Teams of officers were assigned to assess the extent of the issue, the banks involved and the number of people affected. A process for resolving complaints was put in place.
'I understand that affected investors are anxious and looking for solutions,' he said. 'Unfortunately, I think some of the advice they are receiving is not helpful because it has generated anxiety and confusion.'
=> Still dun want to admit that the MAAss slow or non response is the cause of it all? Wanna shift blame to Sporns again? *Ptui*
His assurance to investors: If you have a genuine case of mis-selling, go ahead and launch a complaint. The process will work for you.
He is also firm that the more knowledgeable class of investors should take responsibility for their decisions.
Just three months ago, central bankers were focused on battling inflation. But with inflation easing and the financial crisis biting into the real economy, their attention is moving to protecting jobs (for FTrash?) and companies. In Singapore's case, that is best done by making it cheaper for overseas markets to buy made-in-Singapore goods.
=> While keeping cost of living pegged to USD150 oil?
Earlier this month, MAS adjusted monetary policy from a strengthening stance to 'neutral', a cue that it was prepared to see some easing of the currency's strength. Last Friday, the Singdollar, which had touched 1.346 to the US dollar on July 15, ended Asian trading at 1.506 to the greenback.
So will the Singdollar give up more strength as MAS moves to keep the island's exports competitive?
Mr Heng would not tell, pointing out that monetary policy's role is to provide price stability.
'We never comment on the level of the Singdollar,' he said. 'All I say is that our stance has been appropriate.'
While there is considerable anxiety in the global economic environment, Singapore has weathered setbacks before and this, too, will pass.
The domestic dollar market has functioned smoothly, financial systems are sound and strong economic fundamentals and regulatory standards will help weather the storm.
As a small, open economy, Singapore cannot be insulated from global developments. And so, not just MAS but everyone else - banks, companies, individuals - should maintain a high level of vigilance, he advised.
MAS, for its part, will stay focused on the smooth functioning of the money markets and the stability of the financial system.
'Together with other government policies targeted at individuals, households and businesses, this will allow the Singapore economy to be on a firm and sound footing for recovery when the outside environment stabilises.' [email protected]
