Written Answer by Minister for Manpower Dr Tan See Leng On Inclusion of Other Qualifying Full Banks As Fixed Deposit Banks Under CPFIS

NOTICE PAPER NO. 1804 OF 2023 FOR THE SITTING ON OR AFTER 21 MARCH
QUESTION NO. 2824 FOR WRITTEN ANSWER

MP: Mr Chua Kheng Wee Louis 

To ask the Minister for Manpower with regard to Fixed Deposit Banks under the CPF Investment Scheme (CPFIS) (a) whether the CPF Board has considered including other banks in addition to the three local banks; (b) how many Qualifying Full Banks have applied to be a Fixed Deposit Bank under the CPFIS; and (c) whether the CPF Board has approached these Qualifying Full Banks that meet the criteria to offer such services under the CPFIS.

Answer

1. In addition to the three local banks, one Qualifying Full Bank¹ has applied for inclusion as a fixed deposit (FD) bank under the CPFIS. The CPF Board welcomes interested banks to apply for inclusion as a FD bank under the CPFIS. Relevant information on the inclusion criteria² and application process is published on the CPF Board website. 

¹Qualifying Full Banks are foreign banks conducting a range of MAS-regulated activities, including retail deposit-taking, in Singapore. These banks may also offer Supplementary Retirement Scheme and CPF Investment Scheme accounts, and accept fixed deposits under the CPF Investment Scheme and CPF Retirement Sum Scheme.

²Inclusion criteria as a FD Bank under the CPFIS: (a) locally-incorporated bank with capital fund size of at least S$1.5billion and has a good credit rating; or (b) subsidiary of a locally-incorporated bank which meets criteria (a); or (c) foreign banks with Qualifying Full Bank privileges.