The Monetary Authority of Singapore (MAS) announced on Thursday that Singapore banks DBS, OCBC, and UOB have “insignificant” exposure to struggling banking giant Credit Suisse (Mar 16).
In response to media inquiries, MAS stated that Singapore’s financial sector is sound and resilient.
“Singapore banks are well-capitalised and undergo regular stress tests against credit and other risks,” the financial authority stated.
“Their liquidity balances are strong, supported by a solid and diverse funding source.”
According to MAS, while Credit Suisse has a branch in Singapore, its core activities are private banking and investment banking, and it does not service retail consumers here.
Credit Suisse was obliged to seek a US$54 billion financial lifeline from the Swiss central bank after its shares fell precipitously on Wednesday.
The statement helped to reverse some of the stock market’s severe losses, pushing its equities up by more than 30% at the opening of trading in Zurich.
MAS stated that it has been in constant contact with the Swiss Financial Market Supervisory Authority (FINMA), Credit Suisse’s parent supervisory authority, about recent events and would continue to monitor the issue.
It was highlighted that FINMA and the Swiss National Bank released a joint statement confirming that Credit Suisse continues to meet the higher capital and liquidity criteria applicable to Swiss systemically important institutions, and that the SNB is ready to provide liquidity to the bank.
The MAS stated on Monday that Singapore’s banking system has similarly “insignificant exposures” to the recently bankrupt Silicon Valley Bank (SVB) and Signature Bank.