Monetary Authority Of Singapore Case Study

The Monetary Authority of Singapore - Singapore 's Central Bank

The central bank of Singapore is known as the Monetary Authority of Singapore. The Monetary Authority of Singapore has been instrumental in conducting monetary policy for the country. This central bank is also the third largest foreign exchange center in the world (Singapore) and is very influential on a global economic scale. The Monetary Authority of Singapore uses many strategies to carry out monetary policy in order to achieve their goals. The bank 's monetary policy also has to adapt when the Singapore economy and the global economy changes due to current events. According to the Monetary Authority of Singapore website, the Singapore federal government performed almost …show more content…
But in 1970, the Singapore government passed a law that led to the formation of the Monetary Authority of Singapore in 1971 (Overview). The Singapore government created the Monetary Authority of Singapore because they thought it was necessary to set up a central bank in order to keep everything "under one roof" instead of having various monetary policy departments scattered throughout the Singapore government. They also thought that the creation of a central bank would "raise the level of professional expertise" and would improve the decision-making process for Singapore 's monetary policy (Establishment). The law passed in 1970 established the Monetary Authority of Singapore as the authority to regulate financial services firms in Singapore, it made the Monetary Authority of Singapore as a banker to the Singapore government, and stated that the main objective of the MAS is to promote monetary stability and create policies that catalyze growth for the economy (Overview). In 1977, the government let the Monetary Authority of Singapore regulate the …show more content…
The mission statement that is established by the Monetary Authority of Singapore is, " To promote sustained non-inflationary economic growth, and a sound and progressive financial centre" according to their website (Overview). Also according to the MAS website, the MAS has four main responsibilities when achieving their mission statement. The Monetary Authority of Singapore has the first and foremost responsibility to act as the central bank of Singapore. The first responsibility includes: conducting monetary policy, issuing currency, overseeing payment systems, and serving as the financial agent of the government. The second responsibility is to supervise the financial services industry of Singapore. The last two responsibilities are to manage the foreign reserves of the country and develop the country as a international center of finance (Overview). In order to achieve their mission, through their responsibilities, the Monetary Authority of Singapore also must hold the highest set of values. The MAS 's website states that their four values are: integrity, commitment, enterprise, and teamwork (Overview). These values are important to have, because since the last financial crisis the banking industry as a whole has been scrutinized for having poor