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.