With the support of the IMF’s Asia and Pacific Department (APD) and the Bangko Sentral ng Pilipinas (BSP), an IMF Statistics Department (STA)’s remote financial soundness indicators (FSIs) technical assistance (TA) mission took place during April 30–May 14, 2021. The main objective of the mission was to assist the BSP in compiling FSI for the other financial corporations (OFCs) sector, in line with the 2019 Financial Soundness Indicators Compilation Guide (Guide). Specifically, the Guide recommends compiling indicators for money market funds, insurance corporations, and pension funds, as well as for the total OFC sector. The work of the mission was facilitated by the excellent collaboration of BSP’s staff, in particular of the Department of Economic Statistics (DES). The list of officials met during the mission can be found in Appendix I.
Joseph Goh, Mr. Heedon Kang, Zhi Xing Koh, Jin Way Lim, Cheng Wei Ng, Galen Sher, and Chris Yao
Cyber risk is an emerging source of systemic risk in the financial sector, and possibly a macro-critical risk too. It is therefore important to integrate it into financial sector surveillance. This paper offers a range of analytical approaches to assess and monitor cyber risk to the financial sector, including various approaches to stress testing. The paper illustrates these techniques by applying them to Singapore. As an advanced economy with a complex financial system and rapid adoption of fintech, Singapore serves as a good case study. We place our results in the context of recent cybersecurity developments in the public and private sectors, which can be a reference for surveillance work.
International Monetary Fund. Monetary and Capital Markets Department
This Financial System Stability Assessment paper on Singapore highlights the attractiveness of Singapore as a financial center is underpinned by strong economic fundamentals, sound economic policies, and a sophisticated financial oversight framework. The financial system is exposed to global and regional macrofinancial shocks through significant trade and financial channels but appears resilient even under adverse scenarios. However, banks’ US dollar liquidity is vulnerable to stress conditions. Fintech developments so far have focused on partnerships with existing financial institutions and do not appear to contribute significantly to systemic risk. Singapore authorities should continue to enhance its strong oversight of the financial system. Strengthening the framework for resolution and safety nets, namely by devoting more resources to the Monetary Authority of Singapore (MAS)’ Resolution Unit; and enhancing the oversight of MAS Electronic Payments System by ensuring more staffing resources are two other important areas for action.
This Technical Assistance Report discusses the findings and recommendations made the IMF mission to assist the Bhutanese authorities in improving estimates of annual GDP, and in developing methods for compiling quarterly GDP estimates. The mission found that the National Statistics Bureau (NSB) is engaged in a range of projects to improve Bhutan’s national accounts statistics. Updated annual GDP statistics signal an improvement in data quality, which should enhance policymakers’ ability to formulate and operationalize evidence-based decisions. Significant improvements to Bhutan’s national accounts statistics can be achieved using a three-step process. The NSB should also keep in mind the need to incorporate methodological and conceptual/definitional revisions during the benchmarking and rebasing process.
Knightian uncertainty (ambiguity) implies presence of uninsurable risks. Institutional quality may be a good indicator of Knightian uncertainty. This paper correlates non-life insurance penetration in 70 countries with income level, financial sector depth, country risk, a measure of cost of insurance, and the World Bank governance indexes. We find that institutional quality-transparency-uncertainty nexus is the dominant determinant of insurability across countries, surpassing the explanatory power of income level. Institutional quality, as it reflects on the level of uncertainty, is the deeper determinant of insurability. Insurability is lower when governance is weaker.