I REFER to the letter, "Boost confidence with full insurance of bank deposits" (my paper, Sept 23) by Mr Yee Wing Sun, and have a few questions to raise regarding banks' capital buffers and the regulation of foreign banks.
Many conservative depositors are in a dilemma as their hard-earned cash and fixed deposits are no longer considered safe. Are local banks safer than foreign ones due to the Monetary Authority of Singapore's (MAS) stricter regulations?
Do they have bigger cash/capital deposits and buffer amounts? If banks have to maintain a sufficient level of capital buffer with MAS, what then i s the purpose of the $20,000 deposit insurance?
Would this insurance scheme take effect only when a bank's capital buffer with MAS is used up in order to pay depositors?
In the case of financial problems and bankruptcy, would local or foreign banks have the first priority in getting their money?
Perhaps MAS could answer this query and also let us know how it regulates foreign banks. How tightly are foreign
banks regulated. How can depositors find out more about these banks' cash/capital deposits with MAS?
