Compliance Corner: Monetary Authority Of Singapore Reassures Over Banking Woes

Editorial Staff 16 March 2023

Compliance Corner: Monetary Authority Of Singapore Reassures Over Banking Woes

The latest compliance news: regulatory developments, punishments, guidance, permissions and new product and service offerings.

In a week marked by banking sector turmoil in the US (Silicon Valley Bank, Signature Bank) and Europe (Credit Suisse, various share price falls in banks) Singapore’s main regulator said that its banking system remained in robust shape.

In a statement at the start of the week, the Monetary Authority of Singapore said that Singapore’s banking system remains sound and resilient amid heightened volatility in global financial markets.

“The Singapore banking system has insignificant exposures to these failed banks in the US,” MAS said in a statement.

“Banks in Singapore are well capitalised and conduct regular stress tests against interest rate 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,” it continued. 

“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,” it said.

“MAS is in close touch with Enterprise Singapore to assess any potential impact of international developments on Singapore startups, 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,” the regulator concluded.

Register for WealthBriefingAsia today

Gain access to regular and exclusive research on the global wealth management sector along with the opportunity to attend industry events such as exclusive invites to Breakfast Briefings and Summits in the major wealth management centres and industry leading awards programmes