(Reuters) – Singapore’s banking system remains sound and resilient, and banks in the city-state have confirmed that their exposure to Credit Suisse is insignificant, the Monetary Authority of Singapore (MAS) said.
“Banks in Singapore are well-capitalised and conduct regular stress tests against credit and other risks. Their liquidity positions are healthy, underpinned by a stable and diversified funding base,” the central bank said in response to media queries.
The MAS said it had been in close contact with the Swiss Financial Market Supervisory Authority (FINMA), the parent supervisory authority of Credit Suisse Group AG, on recent developments surrounding the bank.
Earlier today, Swiss regulators pledged a liquidity lifeline to Credit Suisse in an unprecedented move by a central bank after the flagship Swiss lender’s shares tumbled as much as 30% on Wednesday.
Hoping to quell concerns, FINMA and the Swiss central bank said there were no indications of a direct risk of contagion for Swiss institutions from U.S. banking market turmoil.
MAS said it would continue to closely monitor developments and was in contact with FINMA.
(Reporting by Harish Sridharan in Bengaluru; Editing by Anil D’Silva)
