The proposed change will result in 91% of depositors being fully covered by deposit insurance and will ensure that DI continues to fulfil its primary objective of protecting small depositors in the event of a bank failure.
The Monetary Authority of Singapore (MAS) has published a public consultation paper on June 27 proposing to increase deposit insurance (DI) coverage per depositor to $100,000 as well as to improve the clarity and operational efficiency of the DI Scheme.
Currently, the DI coverage per depositor per scheme member is $75,000. The proposed increase will ensure that the vast majority of smaller depositors will continue to be fully covered — keeping in pace with the growth in average deposit balances.
