Martin Lee @ Sg
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MAS Reviews Deposit Insurance to Give Consumers More Protection

Last week, MAS announced that they will be doing a review of the current deposit insurance scheme.

Back when the deposit insurance scheme was started in April 2006, it targeted to fully insure the deposits of 80-90% of individual depositors. A limit of $20,000 per individual depositor per institution was set, allowing 87% of individual depositors to be fully insured.

This coverage ratio has now come down to 83%, the lower end of our targeted range.  MAS is considering raising the coverage limit above $20,000 to achieve a better coverage ratio and provide a better level of protection to depositors.  They are targeting to conduct their review and consult the industry and public on the proposed changes over the next six to nine months, and will seek to implement the revisions to the deposit insurance scheme in 2010.

The consultation paper on the Deposit Insurance Scheme review for you to read and give feedback can be found here.

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5 comments
VSL says 8 years ago

Hi Lion,

Do you know what is the new limit wef 1-Jan-2011? I read somewhere that it is $50k per person per FI. Can you pls confirm this?

I asked a few banks but no one seems to know. They just say “you are covered by whatever amount the law prescribes”.

Reply
    lioninvestor says 8 years ago

    It is a joke that the banks do not know.

    It is currently $20k and is in the process of being increased to $50k.

    This consultation paper was released a few days ago.

    http://www.mas.gov.sg/resource/publications/consult_papers/2010/DIandPPF_Consultation_Paper.pdf

    Reply
      VSL says 8 years ago

      Lion,

      Tks for clarification.

      I had a cursory look at the document. On pg 3/115, under Scope of Coverage, para 5, it states:-

      The revised DI Scheme will insure Singapore dollar deposits of non-bank depositors in general and the coverage limit will be raised from the current S$20,000 to S$50,000 per insured depositor per DI Scheme member.

      Why does it use the term “non-bank depositors”? Shouldn’t it be “bank depositors”? Pls clarify. Tks.

      Reply
        lioninvestor says 8 years ago

        Dear VSL,

        We are all non-bank depositors. Bank depositors refer to banks who put their money in other banks.

        Reply
          VSL says 8 years ago

          Lion,

          Thank you so much for the explanation.

          Reply
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