Developments in Singapore’s Banking Sector

Outline

• Banking liberalisation

• Banking consolidation

Banking Liberalisation

• Types of foreign banks:– Offshore bank (OB)

• Restrictions

– Wholesale bank (WB)• Singapore $ deposits

– Qualified foreign bank (QFB)• Full bank• 15 locations (10 branches)

Banking Liberalisation

• May 99: five-year program to liberalise domestic banking sector

• Oct 99: four QFB, eight WB licences

• Dec 01: two QFB, 16 WB licences, eight converted from OBs

• May 03: eight WB licences

Banking Liberalisation

• 28 full banks– 6 qualified full banks:

• Maybank, Citibank, HSBC, Standard Chartered, BNP Paribas, ABN Amro

• 37 wholesale banks

• 48 overseas banks

Banking Consolidation

• Number of local banks reduced to three in 2001:

– UOB-OUB merger

– OCBC-Keppel merger

End of Presentation