Comments by MAS Spokesperson on Developments in Global Financial Markets and Major Jurisdictions:

MAS has received queries about developments in global financial markets and major jurisdictions over the weekend.  We have been monitoring these developments closely as well as their impact on Singapore's markets and financial institutions.

We welcome the announcement by G-7 finance ministers and central bank governors that they are working together to stabilise financial markets and restore the flow of credit, as well as the specific initiatives announced by the Eurozone and UK governments.  These actions will help inject confidence into global markets.

In Singapore, our financial system remains stable and robust.  Banks, finance companies and insurance companies in Singapore are required by MAS to have assets exceeding their liabilities by an appropriate margin.  They are also required to abide by stringent regulations on capital, asset quality and risk concentration, and to put in place sound risk management systems and processes. MAS’ approach is to emphasize stringent regulation and supervision of financial institutions so that weaknesses can be identified and addressed at an early stage.

Our domestic Singapore dollar money and foreign exchange market have generally been calm and banks have been able to obtain funding in the interbank market.  MAS has kept a higher level of liquidity in the banking system. No extraordinary measures have been needed.  Singapore dollar interest rates remain stable. 

MAS stands prepared to inject additional liquidity as required.  We will take any necessary measures to safeguard the stability of Singapore’s financial system.