The Banking Act 1970 laid out the rules on the operations of both local and foreign banks in Singapore. It superceded the Banking Ordinance 1962 and the Banking (Amendment and Extension) Act 1965.[1] The act was passed to govern the licensing and regulation of the banking business in Singapore. There was hence greater government control over commercial banking following the enactment of the act.
The objectives of the act are to develop robust banking practices; to attract foreign deposits and foreign investments; to create a banking system that would offer an efficient mechanism of payments; and to intermediate between savings and investments in the economy.[2] The Banking Act is administered by the Monetary Authority of Singapore (MAS), which was established on 1 January 1971 to serve as Singapore’s central bank.[3]
References
1. Tan, C. H. (2005). Financial markets and institutions in Singapore (p. 59). Singapore: Singapore University Press. Call no.: RSING 332.1095957 TAN.
2. Lee, S. Y. (1970, September 11). What the new Banking Act of S’pore means. The Straits Times, p. 14. Retrieved from NewspaperSG.
3. Koh, T., et al. (Eds.). (2006). Singapore: The encyclopedia (p. 357). Singapore: Editions Didier Millet in association with the National Heritage Board. Call no.: RSING 959.57003 SIN.
The information in this article is valid as at 2014 and correct as far as we are able to ascertain from our sources. It is not intended to be an exhaustive or complete history of the subject. Please contact the Library for further reading materials on the topic.