Other Banking Services

Singapore is strategically located, with a well-developed infrastructure, and is a hub for trade and financial services in the Asian region. The financial services industry has been a major source of economic growth in Singapore since the 1970s, and the government has continued to provide incentives for the development of the banking and services industry in Singapore. Commercial banks in Singapore are licensed and governed under the Banking Act and are allowed to conduct universal banking business. Commercial banks are licensed, take deposits, provide cheque services and loans, and any other business regulated or authorised by the Monetary Authority of Singapore (MAS), such as financial advisory services, insurance brokerage and capital markets services. There are several advantages for non-residents, foreigners and expatriates to open a bank account in Singapore. The Monetary Authority of Singapore (MAS) classifies commercial banks into the following three categories:

Full Bank

Full-service banks offer all banking services permitted under the Banking Act of Singapore. The following local banks offer a full range of banking services, including demand deposit accounts, ATMs, credit and debit cards, loans, mortgages, etc. These banks have the most extensive branch network. Customers can use any of the banks’ ATMs. OCBC Bank and UOB share an ATM system, so customers of both banks can use the ATMs of one of the banks.

The local full banks are:

Development Bank of Singapore (DBS)
United Overseas Bank (UOB)
Overseas Chinese Bank (OCBC)

Wholly foreign-owned banks with Qualified Foreign Bank (“QFB”) privileges may operate up to 25 branches. They may also offer the following services:

• Shared ATMs and the freedom to move their branches.
• Commercial negotiations with local banks to allow credit card holders to obtain cash advances through the local bank’s ATM network.
• Providing debit card services through the EFTPOS network.
• Provision of Supplementary Retirement Plan and Provident Fund Investment Plan accounts
• Time deposits accepted

Not all foreign banks offer a full range of banking services, and the types and amounts of services offered vary widely. Depending on their partnership agreements with local banks, they can offer a limited number of ATM sites. Ask them about their arrangements when opening an account. Examples of foreign banks with QFB privileges:

• Citibank
• Standard Chartered Bank
• Hong Kong and Shanghai Banking Corporation (HSBC)
• Bank of China (BOC)

Wholesale Banks

Wholesale banks are allowed to conduct the same banking business as regular banks, except that they operate as branches of foreign banks and are not allowed to engage in Singapore dollar retail business. They are not allowed to provide the following services without prior approval from MAS:

• Operating savings accounts denominated in Singapore dollars
• Operate savings accounts denominated in foreign currencies, both local bank accounts and Asian currency accounts.
• Time deposits are accepted, provided that the minimum initial deposit amount for a time deposit is S$250,000.
• They can operate a current account, but if the current account is in Singapore dollars and the customer is a natural person and resident of Singapore, the current account must not be interest-bearing

Offshore Bank

For businesses transacting through Asian Currency Units (ACUs), offshore banks can engage in the same activities as full banks and wholesale banks. The ACU is a unit of account that banks use to record all foreign currency transactions conducted in the Asian money market (ADM). The Singapore dollar transactions of these banks are recorded separately in the domestic banking unit (DBU).