Finance and Insurance

Asian Currency Unit (ACU)

Refers to an operational entity of a financial institution which has been granted approval by the MAS to participate in the Asian Dollar Market in Singapore. The ACU is essentially a separate accounting unit of a financial institution set up for its transactions in the Asian Dollar Market. With effect from July 2021, the DBU-ACU divide has been removed.

Bad Debts Written Off

Means all bad debts written off in accordance with the write off policy for bad debts by reporting entities for the year. Interest and other charges are included.

Bankruptcy applications, Orders Made and Discharges

A bankruptcy application is filed with the High Court by the creditor or the debtor himself.

Upon hearing the bankruptcy application, the High Court may issue a bankruptcy order declaring the individual a bankrupt. A bankruptcy discharge refers to the conclusion of the bankruptcy of an individual.

The individual is no longer subject to the restrictions and disabilities of a bankrupt after his discharge.

Charge-Off Rates

Defined as bad debts written off during the year divided by the average rollover balance for the same year.

Companies in Compulsory Liquidation

A winding up application is filed with the High Court by the creditor or the company. Upon hearing of the winding up application, the High Court may issue a winding up order declaring that the company be wound up. Compulsory winding ups are measured by the number of winding up orders made by the High Court.

Currency In Active Circulation

Figures exclude commemorative, numismatic and bullion coins issued by the Monetary Authority of Singapore (MAS) and cash held by MAS, commercial banks and other financial institutions. The Board of Commissioners of Currency, Singapore merged with the MAS in October 2002.

Demand deposits

Refer to deposits that are payable on demand or without notice, other than savings deposits and include (a) current accounts (in any currency), (b) unclaimed balances on current accounts, (c) unclaimed deposits (including unclaimed fixed and savings deposits) and (d) deposits at call without notice including overnight money.

Distribution Expenses

Expenses incurred by an insurer for distribution of its insurance products, such as commission expenses and agency allowance.

General Insurance Fund

Fund established and maintained by an insurer under section 16 of the Insurance Act 1966 that is concerned with general insurance business.

General insurance business refers to the insurance business of an insurer excluding those concerned with life policies and long-term accident and health policies as defined in the Insurance Act 1966. It includes marine and aviation insurance, motor insurance, property insurance, public liability insurance, travel insurance and work injury compensation insurance, including the effecting and carrying out of contracts for bonds and guarantees.

Insurance

Insurance business in Singapore is divided into two classes – life business and general business. The range of products offered by life insurers includes traditional whole life, endowment, term, accident, health and annuity plans as well as investment-linked insurance plans. General insurers provide coverage for a wide range of risks such as fire, marine and aviation, motor, work injury compensation and public liability.

Life Insurance Fund

Fund established and maintained by an insurer under section 16 of the Insurance Act 1966 that is concerned with life insurance business. Life insurance business refers to all insurance business of an insurer that is concerned with life policies, long-term accident and health policies as defined in the Insurance Act 1966, or both.

Management Expenses

Operating expenses of an insurer, such as staff costs, office rent, directors’ fees, audit fees, repairs and maintenance, utilities, printing, stationery, periodicals, postage, telecommunication, computer, hire of office equipment and travelling expenses, but excludes insurance claims, distribution expenses, reinsurance costs, impairment loss on receivables and corporate tax expense.

Money Supply

Refers to the amount of money in an economy. Narrowly defined, money supply (M1) consists of currency in active circulation and demand deposits. A broad definition of money supply (M2) comprises M1 and quasi money. The latter includes fixed, savings and other deposits with banks as well as negotiable certificates of deposit in Singapore dollar issued by Singapore banks. Money supply (M3) consists of M2 and net deposits with non-bank financial institutions.

Official Foreign Reserves

Refer to the gross official reserves held by the Monetary Authority of Singapore (MAS). These include gold and foreign exchange, Special Drawing Rights and Singapore’s reserve position in the International Monetary Fund (IMF). Prior to May 1999, Singapore’s official foreign reserves were valued at book cost. With effect from May 1999, the book value of foreign reserve assets are translated at market exchange rates prevailing at the end of each reporting month.

Principal Cardholders

An individual is considered a single cardholder, irrespective of the number of cards or unsecured facilities linked to debit cards he holds. Where an individual holds both a principal card and a supplementary card (under another principal cardholder), he shall be reported in both ‘Number of principal cardholders’ and ‘Number of supplementary cardholders’.

Rollover Balance

Means balances that are subject to interest charges and includes any required minimum payment not settled by due date, interest and other charges.

Special Drawing Rights (SDR)

Refer to an international reserve asset created by the IMF and allocated to its members in proportion to their quotas as a supplement to existing reserve assets. The SDR serves as the unit of account of the IMF. The valuation of the SDR is determined on the basis of a basket of five currencies: the US dollar, Euro, Chinese Renminbi, Japanese Yen and Pound Sterling.

Supplementary Cardholders

An individual is considered a single supplementary cardholder, irrespective of the number of supplementary cards or unsecured facilities linked to debit cards he holds.

Total Card Billings

Refers to total billings of reporting entities’ cardholders for the entire year. Any instalment amount which is billed to a customer’s credit card account are included. Interest and other charges are excluded.