The International Monetary Fund (IMF) has hailed Singapore's financial sector oversight as "among the best globally."
The IMF also found that Singapore's economic fundamentals were strong and its economic policies sound, the Monetary Authority of Singapore (MAS) said in a statement, announcing the IMF's assessment.
Having completed its third financial sector assessment programme (FSAP) on Singapore since its last review in 2013, IMF said the overall sector is resilient with healthy buffers to withstand severe adverse shocks
Ensuring that regulation and supervision remain relevant is always a work-in-progress and we are pleased to have had the opportunity to learn from the IMF’s global experience in financial sector surveillance and analysis"
It also noted that MAS has struck a good balance in fostering financial innovation while strengthening regulatory oversight since its last FSAP review in 2013.
Singapore's financial system is resilient even under very adverse scenarios, as demonstrated by stress tests, including a large-scale global financial market turmoil.
The MAS' crisis management and resolution regime for distressed financial institutions has been strengthened, with the introduction of enhanced resolution powers in 2017.
The MAS has the ability to act proactively to address emerging threats to financial stability through the use of macroprudential policies.
In the area of financial technology, the MAS has struck a good balance between promoting financial innovation, while safeguarding financial stability.
Singapore is one of 29 countries required to undergo the FSAP once every five years, due to their "very large financial sectors that are highly interconnected with others globally".
For this review, the FSAP mission visited Singapore three times between June last year and February, and met officials from the MAS, other government agencies, academics as well as those from the private sector.
"Ensuring that regulation and supervision remain relevant is always a work-in-progress and we are pleased to have had the opportunity to learn from the IMF's global experience in financial sector surveillance and analysis," said Ravi Menon, managing director of MAS.