Singapore’s MAS says ready to act amid fallout from SVB failure
By Chanyaporn Chanjaroen
(Bloomberg) — Singapore’s central bank said it is “closely monitoring” the domestic financial system and international developments, after the failure of Silicon Valley Bank in the US sparked heightened anxiety about potential ripple effects globally.
“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,” the Monetary Authority of Singapore said in a statement Monday (13 March).
The central bank issued its statement after Signature Bank was also closed on Sunday by New York state regulators. Singapore’s banking system has insignificant exposures to these failed banks in the US, according to MAS, which is also the financial regulator. The domestic system remains sound and resilient, it said.
Investors have been assessing if the fallout poses risks for broader financial markets, after SVB became the second-largest US bank collapse ever — behind only Washington Mutual during the global financial crisis in 2008. Asian financial stocks fell for a second day.
Fearing contagion would upend the industry, the US Federal Reserve, Treasury Department and Federal Deposit Insurance Corp. moved quickly over the weekend to protect customer deposits and shore up confidence in the banking system.
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