Aggregated News From Investment Management Regulators

Singapore

Welcome Remarks by Mr Edward S. Robinson, Deputy Managing Director (Economic Policy) & Chief Economist, Monetary Authority of Singapore, at the 9th Asian Monetary...

1   Good morning, MD MAS Mr Ravi Menon, President NUS and Chairman of the ABFER Council, Professor Tan Eng Chye, fellow central bankers, distinguished speakers, ladies and gentlemen. Together with my co-organisers, Professor Bernard Yeung and Professor Steve Davis, I am pleased to welcome you to the 2022 Asian Monetary Policy Forum. 

2   In its ninth year now, the AMPF comes at an especially opportune time for macroeconomists to advance the discussion on emergent issues in the global economy. After the Great Moderation, the world has experienced a series of severe shocks, each presenting a stern test for policymakers.

3   The two most recent disruptions—the COVID-19 pandemic and the Russia-Ukraine conflict—have raised fresh issues for monetary economics and international finance. Soon after the Lehman crisis, Queen Elizabeth, during a visit to the LSE, posed an inconvenient question: “why didn’t anyone see this coming?” Conceivably if Her Majesty made another visit today, she may very well ask the same question about global inflation. A comprehensive research agenda to address this query would require pulling together at least four strands of concerns.

4   The first is about the need for a careful identification of each economic shock. Early on during the COVID-19 crisis, several macroeconomists including Martin Eichenbaum and Jason Furman recognised that the global pandemic was imposing an unfamiliar mix of shocks. It was not simply that the pandemic lowered aggregate supply by making workers ill, or that mobility restrictions reduced demand from private consumption. Instead, dynamic interactions between the supply and demand disturbances were causing discontinuous shifts.

5   The current spate of inflationary shocks, including those catalysed by geopolitical events in February, has also highlighted that the supply side can be pertinent for business cycle gyrations, alongside the more commonly-recognised aggregate demand fluctuations. Supply-side factors can no longer be regarded as low-frequency phenomena relevant only as determinants of long-term growth. Rather, in a globalised world, shocks in one jurisdiction can lead to gridlock in production via supply chain linkages, leading to short-term effects on growth and inflation in other economies. These coordination failures within and across industries, are most relevant today.

6   Second, once the nature of the shock is properly characterised, the appropriate policy response needs to be brought to bear. Policies clearly need to be carefully fashioned. Traditional fiscal pump-priming was not appropriate for dealing with strict lockdowns during the pandemic, while tighter monetary policy would not directly alleviate supply-side, cost-push, inflationary pressures. Complicating the picture, when multiple types of shocks are in play, coordination across different policy instruments becomes imperative. Fiscal support to preserve real incomes in a supply-constrained economy during a global pandemic must be subsequently followed by timely withdrawal of stimulus and monetary tightening in the recovery phase to anticipate subsequent inflationary consequences.

7   Researchers can add value to the policy discourse by supplying clearly articulated frameworks that map optimal policy responses to specific shocks and provide guidance on their coordination. Flexibility must also be accorded for individual policy responses across countries reflecting their unique circumstances.

8   The third strand of issues stresses the labour market considerations that have emerged, through the prism of both the micro and macro perspective. During the COVID-19 shock, preventing scarring in the labour market was the key concern, inducing policymakers to experiment with innovative policy designs to preserve existing job matches while facilitating some necessary sectoral reallocation over time. Fast forward to today, supply shocks from the Russia-Ukraine crisis can interact with tight labour markets to amplify inflationary pressures. So,” Whither the flat Phillips Curve?” Has the near-term inflation unemployment trade off worsened and will wages and prices start to drive each other higher in a recursive loop. 

9   Given the key role of the labour market in recent shocks, the ability to track labour market outcomes in real-time is of substantial value. At the height of the pandemic, Steve Davis, Nick Bloom, and Raj Chetty among others constructed valuable new survey-based frameworks to make labour market data available at higher frequency, and more promptly than official sources. Much of these data were granular enough to differentiate economic effects across the income, sector and geographic distributions. 

10   The fourth and final set of issues involves the interaction of pre-pandemic structural trends with cyclical developments. The recent global shocks have deep implications for previously identified structural trends such as secular stagnation and the shifting relationship between technology and jobs. Workers’ increased reliance on remote solutions during the pandemic probably accelerated the digitization of tasks, which in turn has broader implications for income distribution and productivity growth, as well as the property market. In contrast, other structural trends may have been somewhat arrested by recent events; for example, pandemic and geopolitical disruptions injected fresh fragmentation impulses to the world economy and possible unmoored economies from their previous low inflation equilibria. 

11   These four issues—the complex nature of shocks, along with the appropriate policy response, labour market effects and interactions with pre-pandemic structural trends—are key pivots that confront the global economy. And they will each have some hearing at this year’s Forum. Prof Viral Archarya started us off last evening with an astute and realistic assessment of the global landscape before us and the vulnerabilities that lurk in financial market adjustments, drawing in insights from his research. 

12   For the Policy Note session on “Labour Market Policies after COVID-19”, our speakers are Professor Eric French and Professor John Haltiwanger, two eminent labour economists whose work central bankers have always paid close attention to. They will discuss how countries can best formulate labour market policies in the pandemic’s wake to restore and rebuild workers’ ability to engage in the labour market of the future. 

13   At lunchtime, we are privileged to have Professor Emi Nakamura join us virtually. She will speak on “Inflation, Monetary Policy and the Phillips Curve”, a topic that that has become dominant to policy considerations this year. 

14   Anchoring today’s discussions is Professor Ricardo Reis, the author of this year’s Commissioned Paper, who will discuss whether monetary policy has placed an undue emphasis on the natural real rate of interest, which we term r* and measure by government bond yields, a parameter that is inherently tricky to define and problematic to measure. Despite these difficulties, r* has seemingly come to occupy a central place in assessments of the appropriateness of the policy stance, a conundrum that Professor Reis will help clarify. We are delighted that Professor Andres Velasco and Professor Vissing-Jorgensen are with us to discuss the paper.

15   But first, we are honoured to have Dr Li Bo, Deputy Managing Director at the IMF, to deliver the opening address for AMPF2022. He brings with him a wealth of experience in economic policymaking, serving in a range of monetary- and macroprudential-policy related roles at the People’s Bank of China, before assuming his current position at the IMF. Dr Li’s breadth of experience and depth of technical expertise will offer pertinent insights, at this complex global conjuncture. 

MAS Launches 2022 Global FinTech Hackcelerator on Web 3.0 and Green Finance

Singapore, 27 May 2022… The Monetary Authority of Singapore (MAS) announced today the launch of the 7th edition of the Global FinTech Hackcelerator, with the theme “Accelerating A Greener Digital Future”. The competition, powered by Oliver Wyman, seeks to leverage the potential of FinTech in accelerating the development of Web 3.0 and Green Finance, in Singapore and the region. 

2. FinTech firms and solution providers around the world are invited to submit innovative solutions to address over 50 problem statements that have been collected from financial institutions and industry players. 

MAS Imposes Additional Capital Requirement on OCBC Bank for Deficiencies in Response to Spoofed SMS Phishing Scams

Singapore, 26 May 2022... The Monetary Authority of Singapore (MAS) has imposed an additional capital requirement, of approximately S$330 million, on OCBC Bank (OCBC), given deficiencies in the bank’s response to a wave of spoofed SMS phishing scams in December 2021. OCBC is required to apply a multiplier of 1.3 times to its risk-weighted assets for operational risk. This translates to an additional amount of approximately S$330 million in regulatory capital (based on reported financial statements as at 31 March 2022). 

9th Asian Monetary Policy Forum to Address the Conduct of Monetary Policy in the Current Challenging Environment

The 9th Asian Monetary Policy Forum (AMPF) will take place in Singapore today and tomorrow, bringing together leading policymakers and academics to focus on issues confronting the conduct of monetary policy in today’s complex environment. After two years of meeting virtually, the hosts are delighted to welcome many attendees in person, while the event’s hybrid format will continue to allow remote participation. 2   The Forum opening dinner, to be held today, will be addressed by Professor Viral Acharya, C.V. Starr Professor of Economics at the New York University and academic advisor to the Fed New York and Philadelphia. A renowned...

“A Future Ready Workforce for an International Financial Centre” – Opening Remarks by Mr Ravi Menon, Managing Director, Monetary Authority of Singapore, at Singapore...

Good morning from Singapore. I am pleased to join all of you, including our overseas Singaporeans and their friends, as well as leaders and professionals from Singapore’s financial centre at today’s forum.

Singapore’s financial centre is doing exceedingly well, and prospects remain bright for the years ahead.

The financial sector performed strongly throughout the Covid-19 pandemic. The sectorRefers to growth in real value-added (excluding holding companies). grew by an annual average of 7.2% during 2020-21, four times faster than the overall economy.  The last two years also saw 5,800 net jobs created in financial services.

Insurance agents charged for obstructing the course of justice, falsification of records and providing false information to MAS

Singapore, 19 May 2022… Ms Yuen Pui Leng Eunice and Ms Tan Zhen Zhi, Grace, insurance agents of Prudential Assurance Company Singapore (Pte) Ltd (PACS), were charged today for offences under the Financial Advisers Act1 (FAA). Ms Yuen was further charged for an offence under the Penal Code2 (PC).

Industry Taskforce Consults on Second Version of Green and Transition Taxonomy

Singapore, 12 May 2022… The Green Finance Industry Taskforce (GFIT)1, convened by the Monetary Authority of Singapore, today published for public consultation detailed thresholds and criteria for economic activities in the energy, transport, and real estate sectors. This builds on GFIT’s earlier proposed taxonomy in January 20212. It also incorporates a user guide for financial institutions and companies to apply the taxonomy.

MAS Imposes Civil Penalty of $100,000 on Mdm Tan Su Lan for False Trading

Singapore, 11 May 2022… The Monetary Authority of Singapore (MAS) has imposed a civil penalty of $100,000 on Mdm Tan Su Lan for false trading in the shares of Aspial Corporation Limited (ACL) and Far East Orchard Limited (FEOL)1.

Regulator Information

Abbreviation: ASIC
Jurisdiction: Australia
Abbreviation: BCSC
Jurisdiction: Canada
Abbreviation: BVI FSC
Jurisdiction: British Virgin Islands
Abbreviation: CSA
Jurisdiction: Canada
Regulator Name: Capital Market Authority
Abbreviation: CMA
Jurisdiction: Saudi Arabia
Abbreviation: CIMA
Jurisdiction: Cayman Islands
Regulator Name: Central Bank of Armenia
Abbreviation: CBA
Jurisdiction: Armenia
Regulator Name: Central Bank of Iceland
Abbreviation: CB IS
Jurisdiction: Iceland
Abbreviation: CBR
Jurisdiction: Russian Federation
Abbreviation: CSRC
Jurisdiction: China
Abbreviation: CSSF
Jurisdiction: Luxembourg
Abbreviation: CFTC
Jurisdiction: USA
Abbreviation: CFPB
Jurisdiction: United States
Abbreviation: HANFA
Jurisdiction: Croatia
Abbreviation: CySEC
Jurisdiction: Cyprus
Abbreviation: DFSA
Jurisdiction: Denmark
Abbreviation: AFM
Jurisdiction: Netherlands
Regulator Name: European Banking Authority
Abbreviation: EBA
Jurisdiction: Supranational
Abbreviation: EIOPA
Jurisdiction: Supranational
Abbreviation: ESMA
Jurisdiction: ESMA
Abbreviation: FDIC
Jurisdiction: United States
Regulator Name: Federal Reserve System
Abbreviation: FRB US
Jurisdiction: United States
Abbreviation: FRA
Jurisdiction: Egypt
Abbreviation: FCNB
Jurisdiction: Canada
Regulator Name: Financial Conduct Authority
Abbreviation: FCA
Jurisdiction: United Kingdom
Abbreviation: FinCEN
Jurisdiction: United States
Abbreviation: FINRA
Jurisdiction: United States
Regulator Name: Financial Market Authority
Abbreviation: FMA
Jurisdiction: Austria
Regulator Name: Financial Markets Authority
Abbreviation: AMF
Jurisdiction: Canada
Regulator Name: Financial Markets Authority
Abbreviation: AMF
Jurisdiction: France
Regulator Name: Financial Markets Authority
Abbreviation: FMA
Jurisdiction: New Zealand
Abbreviation: FSMA
Jurisdiction: Belgium
Abbreviation: SFC
Jurisdiction: Colombia
Abbreviation: FIN-FSA
Jurisdiction: Finland
Abbreviation: FME IS
Jurisdiction: Iceland
Abbreviation: FSA
Jurisdiction: Norway
Abbreviation: IOMFSA
Jurisdiction: Isle of Man
Abbreviation: JFSC
Jurisdiction: Jersey
Abbreviation: MFSA
Jurisdiction: Malta
Abbreviation: MSC
Jurisdiction: Canada
Abbreviation: MAS
Jurisdiction: Singapore
Abbreviation: NFA
Jurisdiction: United States
Abbreviation: CNV
Jurisdiction: Argentina
Abbreviation: OFAC
Jurisdiction: United States
Abbreviation: OCC
Jurisdiction: United States
Abbreviation: OSC
Jurisdiction: Canada
Abbreviation: CMVM
Jurisdiction: Portugal
Abbreviation: SEBI
Jurisdiction: India
Abbreviation: FSA
Jurisdiction: Japan
Abbreviation: SEC
Jurisdiction: United States
Abbreviation: SEC NG
Jurisdiction: Nigeria
Abbreviation: SEC TH
Jurisdiction: Thailand
Abbreviation: CVM
Jurisdiction: Brazil
Abbreviation: SFC
Jurisdiction: Hong Kong
Regulator Name: State Securities Commission
Abbreviation: SSC
Jurisdiction: Vietnam
Abbreviation: FI
Jurisdiction: Sweden
Abbreviation: FINMA
Jurisdiction: Switzerland
Abbreviation: UST
Jurisdiction: United States

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