SINGAPORE: Singapore’s central bank is increasing its deposit insurance coverage per depositor to a maximum of S$100,000 (US$73,160) from April next year.
The boost by a third is from the existing level of S$75,000, according to the Monetary Authority of Singapore in a response to earlier consultation with firms including the local units of HSBC Holdings Plc and GXS Bank Pte, a digital-banking venture of Grab Holdings Ltd and Singapore Telecommunications Ltd.
Respondents were supportive of the proposed hike, and a minority of them suggested having a higher coverage level beyond S$100,000, according to the report. The increase will restore the percentage of fully-covered insured depositors to 91%, from 89%, the MAS said.
The move comes amid concerns over the global banking industry after the failures of US lenders including Silicon Valley Bank, Signature Bank and Switzerland’s Credit Suisse.
US officials had been reviewing their own deposit insurance scheme, which safeguards deposits of up to US$250,000 on most accounts, Bloomberg News reported earlier this year.