The Monetary Authority of Singapore (MAS) has stated that Singapore’s banking system remains sound and resilient amid heightened volatility in global financial markets following the recent closure of banks – Silicon Valley Bank and Signature Bank. Silvergate Bank has announced that it will undergo orderly wind down and voluntary liquidation in the US. The Singapore Dollar money market and foreign exchange market continue to function well.
The Singapore banking system has insignificant exposures to these failed banks in the US. Banks in Singapore are well-capitalised and conducting regular stress tests against interest rates and other risks. Their liquidity positions are healthy, underpinned by a stable and diversified funding base. These factors will allow them to weather potential stresses from global financial developments.MAS stated that it is closely monitoring the domestic financial system and international developments. MAS stands ready to provide liquidity through its suite of facilities to ensure that Singapore’s financial system remains stable and financial markets continue to function in an orderly manner.
MAS is in close touch with Enterprise Singapore to assess any potential impact of international developments on Singapore start-ups, including those with operations in the US. The initial feedback indicates that the impact is limited. MAS and other government agencies will continue to monitor the situation closely for any signs of stress.