Local and Foreign Singapore Banks Compared

The Monetary Authority of Singapore, known as the MAS, regulates both local and foreign banks under the same stringent rules and regulations.  In terms of a banks strength and safety, all banks must pass the intense scrutiny of the MAS.

According to Ms. Angelina, who is Director of MAS, “Our regulations require all foreign banks in Singapore to maintain a proportion of their assets of their Singapore branch in safe and liquid Singapore-dollar-denominated and Singapore-domiciled assets”.


Singapore government guarantees the deposits of all accounts and depositors have first claim to the bank’s assets ahead of other debtors.


So how do we know that our local banks are safe and have lower lending rates, and won’t raise their rates?  There is no guarantee, unless there is competition and a robust market.


Many foreign banks base their support centers in Singapore and have obtained QFB status, or Qualifying Full Bank, which makes them operate much like a local bank would.


If you are considering a Singapore home loan, the safety and solvency of the bank should not be your first concern.  First priority is asking yourself if you can afford the commitment you are about to take, and if you have structured this home loan financing for your benefit.


Safety comes with a home loan that meets your personal requirements and cash flow needs, whether in Singapore or anywhere else.  You have no control over the banks safety but you do have control about yours.

Local and Foreign Singapore Banks Compared

MORE ABOUT Local and Foreign Singapore Banks Compared

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