What type of regulatory function does the Monetary Authority of Singapore (MAS) perform?

The Monetary Authority of Singapore (MAS) serves a crucial role in ensuring the stability of the financial system in Singapore. Financial stability oversight encompasses monitoring and mitigating systemic risks within the financial sector, which includes banks, financial institutions, and markets. This responsibility is vital as it helps maintain the trust of investors and the public in the country’s financial system. MAS uses various tools and regulatory measures to oversee risks that could potentially destabilize the economy, such as market fluctuations, credit risks, and liquidity issues.

The other options, while relevant to financial regulation in general, focus on areas outside the primary mandate of the MAS. Consumer protection pertains more specifically to safeguarding consumers from unfair practices in financial services, not the central function of MAS. Taxation administration is handled by the Inland Revenue Authority of Singapore, separate from the MAS's responsibilities. Lastly, while the MAS does have a role in regulating foreign investment to some extent, it is not primarily focused on that function compared to its overarching aim of ensuring financial stability.