SINGAPORE: The Singapore banking system has “insignificant exposures” to the failed Silicon Valley Bank (SVB) and Signature Bank, which collapsed in recent days, the Monetary Authority of Singapore (MAS) said on Monday (Mar 13).
“Banks in Singapore are well-capitalised and conduct regular stress tests against interest rate and other risks,” MAS said in a media release.
“Their liquidity positions are healthy, underpinned by a stable and diversified funding base.”
The authority added that these factors will allow them to weather potential stresses from global financial developments.
On Friday, US regulators shut down Silicon Valley Bank in the country’s biggest banking failure since the 2008 financial crisis.
Silicon Valley Bank, which specialised in financing start-ups, had US$209 billion in assets and approximately US$175.4 billion in deposits at the end of 2022.
Authorities swooped in and seized the bank’s assets after a run on deposits made it no longer tenable for it to stay afloat on its own.
Similarly, New York-based Signature Bank was closed by state regulators on Sunday, roiling global markets and leaving billions of dollars in uninsured deposits belonging to companies and investors stranded.
In its release, MAS said the country’s banking system remains “sound and resilient” amid heightened volatility in global financial markets following the banks’ closure.
“The Singapore Dollar money market and foreign exchange market continue to function well,” it said.