Bayoumi, T., 1996, “International Trade and Real Exchange Rates” in Exchange Rate Movements and Their Impact on Trade and Investment in the APEC Region, ed. by Takatoshi Ito et al (Washington: International Monetary Fund).
Krugman, P., 1995, “What Do We Need to Know about the International Monetary System?” in Understanding Interdependence, ed. by P.B. Kenen, Princeton University Press.
Montiel, P., 1997, “Exchange Rate Policy and Macroeconomic Management in ASEAN Countries” in Macroeconomic Issues Facing ASEAN Countries, ed. by J. Hicldin et al (Washington: International Monetary Fund).
Sarel, M., 1997, “Growth and Productivity in ASEAN Countries,” IMF Working Paper 97/97 (Washington: International Monetary Fund)
Prepared by Mark R. Stone.
Three types of licenses are available to commercial banks in Singapore. Banks with “full licenses” (32 in total including the 10 domestic banks) can offer a full range of local and foreign currency services. Banks with “restricted licenses” (13) can operate the whole range of activities in the Asian Dollar market as the full licensed banks but the activities of their DBUs are limited; they can maintain only a single branch, cannot accept fixed interest-bearing deposits less than S$250,000 from nonbanks, and cannot offer general savings accounts. Banks with “offshore licenses” (104), which is the only license granted by the MAS in recent years, operate primarily in the Asian Dollar Market; they cannot accept any interest-bearing Singapore dollar deposits from resident nonbanks (except approved financial institutions) and can maintain only one branch.
Employer contributions have been reduced to 10 percent in 1999-2000.
The Kuala Lumpur Stock Exchange (KLSE) imposed a new rule on August 31, 1998, requiring all trades in Malaysian shares to be done on the KLSE. In addition, the Malaysian authorities implemented capital controls that required: the repatriation by October 1 of all ringgit held abroad and an end to offshore trading in ringgit instruments; the retention of the proceeds of the sale of Malaysian securities in the country for a year; payment in foreign currency for imports and exports; and central bank approval for the conversion of ringgit into foreign currency. The new KLSE rule together with the capital controls effectively shut down the over-the-counter securities market.
Definitions of non-performing loans are as follows:
Substandard: normal repayments are overdue or may be in jeopardy (10 percent provision is required for the unsecured portion).
Doubtful: full liquidation of outstanding debts appear questionable and the accounts suggest that there will be a loss (50 percent provision is required for the unsecured portion).
Loss: outstanding loans are regarded as uncollectible (100 percent provision is required for the unsecured portion).
MAS 757 will be reviewed in August 1999.
Prepared by Michael Sarel.
Each of the variables in Table 1 was found to have a single unit root. The residual from the cointegration equation was found to be stationary at the 95 percent confidence level. All variables were in logarithmic form. The cointegration equation also included a constant term and a time trend.
Prepared by Jaewoo Lee.
The currency depreciated significantly less (by about 4 percent) if a DOTS trade-weighted index is used rather than the INS-based measure. The former has larger weights on Singapore’s ASEAN trade partners, against which the Singapore dollar has appreciated, but does not take into account third-country competition (which is included in the INS measure).