Financial Regulations and Stability of Banking Systems: A Case Study of Citibank in Singapore
DOI:
https://doi.org/10.53819/81018102t5195Abstract
Financial regulations are essential for maintaining the stability and soundness of banking systems. These regulations establish guidelines and requirements for banks to ensure they have sufficient capital, manage liquidity effectively, and mitigate risks. By enforcing financial regulations, regulatory authorities promote transparency, protect depositors' interests, and prevent financial crimes. Ultimately, a robust regulatory framework contributes to a stable banking system that can withstand economic shocks and safeguard the overall financial health of an economy. The study found that the financial regulations imposed by the Monetary Authority of Singapore (MAS) have proven to be effective in ensuring the stability and resilience of the banking system in Singapore. Citibank has implemented robust risk management practices in accordance with the financial regulations in Singapore. Regular audits, inspections, and compliance assessments conducted by the MAS help maintain the integrity of Citibank's operations and promote a culture of compliance within the bank. The MAS actively participates in international forums, exchanges knowledge, and harmonizes regulatory standards to address cross-border risks and maintain the stability of the financial system. The study concluded that the MAS plays a crucial role in overseeing and regulating the financial sector in Singapore, with a primary focus on maintaining stability, ensuring sound governance, and protecting the interests of stakeholders. Excessive regulations may hinder innovation and impede the competitiveness of banks, while inadequate regulations may leave the financial system vulnerable to risks. The study recommended that financial regulations should emphasize the importance of transparency and disclosure, enabling stakeholders to make informed decisions. The MAS should encourage banks to provide clear and accurate financial statements and disclosures that adhere to international accounting standards. The regulatory framework should encourage banks to adopt and leverage emerging technologies such as artificial intelligence, blockchain, and digital identity, while ensuring robust cybersecurity measures and stringent data protection standards.
Keywords: Financial Regulations, Stability, Banking Systems, Singapore
References
Al Zaidanin, J. S., & Al Zaidanin, O. J. (2021). The impact of credit risk management on the financial performance of United Arab Emirates commercial banks. International Journal of Research in Business and Social Science (2147-4478), 10(3), 303-319. https://doi.org/10.20525/ijrbs.v10i3.1102
Ashraf, B. N., & Shen, Y. (2019). Economic policy uncertainty and banks’ loan pricing. Journal of Financial Stability, 44, 100695. https://doi.org/10.1016/j.jfs.2019.100695
Can, U., & Bocuoglu, M. E. (2022). Evolution of Islamic liquidity management in Turkey. International Journal of Islamic and Middle Eastern Finance and Management, 15(4), 788-810. https://doi.org/10.1108/IMEFM-10-2020-0506
Engbith, L. (2022). Indonesia Deposit Insurance Corporation. Engbith, Lily S.(2022)" Indonesia Deposit Insurance Corporation," Journal of Financial Crises, 4(2), 399-411.
Fromentin, V. (2021). Cross-border workers in the Greater Region of Luxembourg and financial instability: a non-linear approach. Applied economics, 53(27), 3171-3192. https://doi.org/10.1080/00036846.2021.1877251
Hsu, C. C., Quang-Thanh, N., Chien, F., Li, L., & Mohsin, M. (2021). Evaluating green innovation and performance of financial development: mediating concerns of environmental regulation. Environmental Science and Pollution Research, 28(40), 57386-57397. https://doi.org/10.1007/s11356-021-14499-w
Ismail, F. (2022). Islamic Finance in the Financial Markets of Europe, Asia and America. Taylor & Francis. https://doi.org/10.4324/9781003188070
Kakebayashi, M., Presto, G. P., Yuyama, T., & Matsuo, S. I. (2023). Policy Design of Retail Central Bank Digital Currencies: Embedding AML/CFT Compliance. CFT Compliance (February 22, 2023). https://doi.org/10.2139/ssrn.4366778
Kalogiannidis, S., & Kontsas, S. (2021). Impact of Business Communication Determinants on Business Profitability: An Empirical Evidence of Citibank in Greece. International Journal of Human Resource Studies, 11(2), 137-150. https://doi.org/10.5296/ijhrs.v11i2.18358
Karim, S., Akhtar, M. U., Tashfeen, R., Rabbani, M. R., Abdul Rahman, A. A., & AlAbbas, A. (2022). Sustainable banking regulations pre and during coronavirus outbreak: the moderating role of financial stability. Economic Research-Ekonomska Istraživanja, 35(1), 3360-3377. https://doi.org/10.1080/1331677X.2021.1993951
Khalid, B., & Kot, M. (2021). The impact of accounting information systems on performance management in the banking sector. IBIMA Business Review, 578902. https://doi.org/10.5171/2021.578902
Krüger, P. S., & Brauchle, J. P. (2021). The European Union, cybersecurity, and the financial sector: A primer. .
Ledhem, M. A., & Mekidiche, M. (2020). Economic growth and financial performance of Islamic banks: a CAMELS approach. Islamic Economic Studies, 28(1), 47-62. https://doi.org/10.1108/IES-05-2020-0016
McKillop, D., French, D., Quinn, B., Sobiech, A. L., & Wilson, J. O. (2020). Cooperative financial institutions: A review of the literature. International Review of Financial Analysis, 71, 101520. https://doi.org/10.1016/j.irfa.2020.101520
Moudud-Ul-Huq, S., Biswas, T., Abdul Halim, M., Mateev, M., Yousaf, I., & Abedin, M. Z. (2022). The effects of bank competition, financial stability and ownership structure: Evidence from the Middle East and North African (MENA) countries. International Journal of Islamic and Middle Eastern Finance and Management, 15(4), 717-738. https://doi.org/10.1108/IMEFM-05-2020-0214
Quek, B. (2022). Monetary Authority Of Singapore. https://doi.org/10.5089/9798400214950.002
Tarullo, D. K. (2019). Financial regulation: Still unsettled a decade after the crisis. Journal of Economic Perspectives, 33(1), 61-80. https://doi.org/10.1257/jep.33.1.61
Wong, S. Y. (2019). Cross-National Ethnic Networks in Financial Services: A Case Study of Local Banks in Singapore. In Linking Industries Across the World (pp. 243-276). Routledge. https://doi.org/10.4324/9781351153928-15
