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Establishment of Singapore Deposit Insurance Corporation Limited 
Posted on Wednesday, February 08, 2006 - 08:00 PM

The Monetary Authority of Singapore (MAS) announced that the Singapore Deposit Insurance Corporation Limited (SDIC) has been set up to administer the deposit insurance scheme and manage the deposit insurance fund. This follows the enactment of the Deposit Insurance Act in 2005.

2. SDIC is a company limited by guarantee under the Companies Act and is a separate entity from MAS. The members of the company are Mr James Koh Cher Siang, Mr Thean Lip Ping and Mr Law Song Keng. The board of SDIC is appointed by its members, and is accountable to the Minister in charge of MAS, Senior Minister Goh Chok Tong.

3. The board is chaired by Mr James Koh Cher Siang. The other directors are Mr Law Song Keng, Mr Ron Foo Siang Guan, Mr Han Eng Juan and Professor Hong Hai. The board has appointed Mr Ooi Sin Teik as SDIC's Chief Executive Officer. The members and directors of SDIC are at Annex 1 (found at www.mas.gov.sg).

4. Targeted to commence on 1 April 2006, the deposit insurance scheme will provide compensation to individuals and charities for the first $20,000 of their Singapore dollar deposits, net of liabilities, in the event that their bank or finance company fails. The scheme compensates depositors through a fund built up from contributions by full banks and finance companies. SDIC will conduct public education on the deposit insurance scheme and issue rules on the operational aspects of the scheme.