SINGAPORE, Nov. 2 (Xinhua) -- Singapore's central bank is introducing a 30 million Singapore dollars (about 23.46 million U.S. dollars) grant scheme and a more risk-sensitive capital framework to encourage insurers to invest in infrastructure and securitization, as it seeks to mobilize long-term private capital for regional infrastructure needs.
The initiatives would help insurers develop the expertise and investment capabilities needed to originate, assess and manage infrastructure investments, the Monetary Authority of Singapore (MAS) said in a statement on Monday.
Under the scheme, MAS will allocate 30 million Singapore dollars from the Financial Sector Development Fund for an Infrastructure Capability Development Grant for Insurers.
The grant, effective immediately, will help cover costs of setting up dedicated investment teams, training existing staff and engaging professional services to establish or expand infrastructure investment activities.
MAS said infrastructure and other long-term assets, including investments through securitization structures, could complement insurers' long-dated liabilities.
Its revised capital framework will better reflect the underlying risks of these investments while maintaining prudential standards and protecting policyholders. ■
