From April 1 next year, when a bank is closed or taken over, the depositor will be able to withdraw up to a deposit of up to 100,000 yuan, which is one -third higher than the existing level.The Singapore Financial Authority announced on Friday (September 22) that it would increase the guarantee of the guarantee under the deposit insurance plan, so that more people's full deposits when banks were in crisis could be guaranteed.This decision is suitable, because over time, people's income increases and more and more money in banks exist.
Although a bank failure has occurred in Singapore, we must prepare for the worst case, even if the probability they occur is minimal.Because the global financial market is getting closer and closer, any event that may affect the security of the bank, no matter how small, may cause large -scale crowding worldwide to bring a catastrophic impact on the entire bank system.The closure of Silicon Valley Bank in the United States earlier this year, which led to the bankruptcy of Europe and the United States due to the unable to cope with the crowded depository of the depositors, highlighting the importance of the deposit insurance plan.
Singapore's maintenance limit of the deposit insurance plan in 2006 was 20,000 yuan, and in 2011 increased to 50,000 yuan, allowing 91%of deposit deposits to be fully guaranteed.With the increasing wealth in the region, bank deposits are increasing. In order to maintain insurance coverage, the upper limit of the 2019 guarantee increases to 75,000 yuan.In the first quarter of 2022, the insurance coverage fell to 89%, and the HKMA publicly solicited opinions on raising the upper limit of the insured in June.
After adjusting the guarantee limit to 100,000 yuan, the insurance coverage rate rises to 91%, which will help enhance the confidence of depositors' confidence in the local financial system and the banking industry, avoid crowding when the storm strikes, and affects the stability of the financial market.
Even if the limit has been raised by one -third, compared with some foreign insurance plans, the limit of 100,000 yuan still makes some people slightly lack.For example, Hong Kong announced in July this year that the upper limit of deposit insurance was increased from HK $ 500,000 to HK $ 800,000 ($ 140,000).In fact, on the issue of evaluating the insurance amount, it should not only look at the actual amount, but the insurance coverage shall prevail.Let 90%of deposit deposits be guaranteed in full, and meets the global standards formulated by the International Deposit Insurance Insurance Association.Although Hong Kong's upper limit is 40%higher than Singapore, the coverage rate obtained by the full guarantee is 92%, which is comparable to Singapore.
The upper limit of the deposit insurance insurance must be considered, because this will increase the cost of the bank.Under the deposit insurance plan, all banks and financial institutions that have business in Singapore pay premiums to Singapore deposit insurance companies responsible for managing the Singapore deposit insurance plan each year.From 0.025 % to 0.08 %), it depends on the asset quality of the bank itself.As the scope of underwriting expands and the deposit increases, the premiums that banks must pay will also increase. The so -called "wool is on the sheep", these costs will eventually be passed on to bank customers with lower savings interest rates or higher administrative charges.
In order to ensure all depositors, including individuals, companies and organizations, the original intention is to ensure small depositors.They are the most vulnerable groups in the banking system, and they are only pursuing a peace of mind. Even if the interest of the bank is insignificant, the funds still have banks.If there is no proper guarantee, once the bank is in crisis of bankruptcy, some people may lose their life savings.Raising the insurance amount to more than 100,000 yuan may not benefit more small depositors, but they have to bear extra costs together.From the current point of view, the upper limit of 100,000 yuan is sufficient, but it is difficult to say in a year or two, so it is necessary to review it from time to time.
The key to ensuring the security and strong security of the bank system is to take a precautionary protection measure. In addition to sound supervision and strict supervision, banks themselves must also have efficient governance and risk management mechanisms.There is a set of important domestic systems in Singapore. For banks that have huge retail businesses in Singapore, stricter regulatory measures are adopted to ensure that they have the ability to resist various risks and impacts.The deposit insurance plan is complementary to these security measures. When the bank has a financial crisis, it provides a security net for small depositors.The role of this security net is to enhance the confidence of small depositors, rather than replacing sound risk management and effective regulatory measures.
