After SVB Collapse, Monetary Authority of Singapore Says City-State’s Banking System Remains Sound, Resilient

The Monetary Authority of Singapore (MAS) recently said that Singapore’s banking system “remains sound and resilient amid heightened volatility in global financial markets following the recent closure of banks in the US.”

The Singapore Dollar money market and foreign exchange market “continue to function well.”

The Singapore banking system reportedly “has insignificant exposures to these failed banks in the US.”

Banks in Singapore are “well-capitalized 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,” the Monetary Authority of Singapore (MAS) claims.

MAS further noted that it is “closely monitoring the domestic financial system and international developments.”

MAS claims that “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 reportedly “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.”

As noted in the update, MAS issued these comments following the Silicon Valley Bank and Signature Bank announcements that they “will undergo orderly wind down and voluntary liquidation.”

As covered, the Monetary Authority of Singapore (MAS) recently issued a Notice imposing mandatory baseline standards of due diligence and conduct requirements “for corporate finance (CF) advisers.”

These requirements aim to “raise the standards of conduct of CF advisers, improve the quality of disclosures and allow investors to make informed decisions.”

As noted in the update from MAS, CF advisers that “assist entities in fund raising from the general public will henceforth be subject to mandatory minimum standards when conducting due diligence on CF transactions.”

As mentioned in the announcement, these reportedly “include conducting background checks and interviews with relevant stakeholders; conducting site visits of prospective issuers’ key assets; assessing knowledge, skills and experience of third-party service providers; as well as ensuring that material issues are satisfactorily resolved or clearly disclosed.”

The update from MAS further noted that CF advisers will also “have to comply with enhanced requirements to mitigate conflicts of interests, such as where the adviser’s related corporations or controlling shareholders also provide services to the same customer.”

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