Singapore is one of the most important monetary centers of the world and a major distribution hub of investment in Southeast Asia. As our accountants in Singapore remind, the country has formed one of the most progressive banking structure in the world, totaling about 700 local and foreign banks and financial organizations that offer services ranging from consumer banking and strength management, to investment banking, stock exchange and specialized coverage services.
Singapore’s leading banks are DBS, Citibank, HSBC, UOB, OCBC, ABN AMRO and Standard Chartered. Country’s central bank is the Monetary Authority of Singapore (MAS), which controls financial policy, normalizes banks and financial institutions and issues the exchange.
Regardless of the present absence of government-sponsored deposit insurance program, MAS plans to create such a system in the near future.
The main aspects that have contributed to the success of the banking industry in Singapore are the following:
• identifying and providing to the needs of Small and Medium Enterprises that cover a substantial banking market in Singapore.
• establishment of sophisticated banking services like company and investment banking actions, apart from traditional loaning and deposit-taking purposes.
• development of foreign banks, some of which made Singapore a local or even global platform for important banking services, which in turn led to enlarged effectiveness.
• strict banking privacy laws, tax friendly policies and a group of wealth management services that created a private banking boom.
The accounting firm in Singapore tells to their clients that commercial banks may involve in all possible types of banking actions.
Furthermore, to provide commercial banking facilities, such as lending and checking operations or deposit-taking, banks may also engage in any other kind of banking commerce, which is permitted by Monetary Authority in Singapore, including consulting services in investment, brokerage services in the field of insurance and capital market assignment services.
Liberalization of banking sector in Singapore
In May 1999, Monetary Authority of Singapore tossed a five-year liberalization platform to reinforce the banking system and to recover Singapore’s status as a global financial center. The actions involved distributing a new type of full banking licenses known as Qualifying Full Bank (QFB) licenses to foreign banks, growing the number of limited banks and giving offshore banks better flexibility in Singapore Dollar general business.
Monetary Authority of Singapore also set out to improve corporate authority practices and furthermore, the 40 percent foreign stock-holding boundary in local banks was raised. The second stage of liberalization started in June 2001 through which the constrained banks were re-classified as extensive banks to increase effectiveness in retail banking. Merging of local banks was seen as a positive and steadying move as these banks played an essential role in providing flexibility and stability to the banking system, particularly through a financial crisis.
Types of services provided by banks in Singapore
Private banks in Singapore such as Credit Suisse, Citigroup, UBS or Standard Chartered offer:
• credit services;
• tax and estate development;
• global wealth administration services;
• benefit protection;
• investment plans;
• wealth and lifestyle suggested services.
Our accountants in Singapore can provide to their clients information on existing banking services and also consultancy for future private investments.
Presently in Singapore function 113 commercial banks and five of them are listed at the local level and are maintained by three local financial groups.
Also there are 28 banks that offer the full range of services and work under the “Banking Act in Singapore”. Five of them are listed and owned by three local financial groups and the remaining 23 banks are divisions of banks registered in a foreign country. Six of the 23 divisions of foreign banks have the license to implement a full range of banking services.
Our accounting firm in Singapore can help foreign business people to create bank accounts for their own private affairs or for dealing matters.
Furthermore, our accountants in Singapore offer public accountancy services, reporting of financial statements, analyzing of commercial transactions.
For any other information regarding our accounting services, please contact our financial specialists in Singapore.