Comments by MAS Spokesperson on Market Conditions:
"MAS has been closely monitoring developments in global financial markets and the impact on Singapore's markets and financial institutions. Financial institutions in Singapore are functioning normally. They have also enhanced their risk management measures given the uncertain market conditions.
In anticipation of tighter lending conditions, the MAS had in July expanded our Standing Facility to all MEPS+ participant banks. This provides assurance that banks can readily access central bank liquidity when required.
US$ money markets were strained in the past fortnight, with some of the funding stresses transmitting to a number of financial markets. S$ domestic markets have been relatively calm during this time. However, as S$ funding activities picked up into the quarter-end, S$ SIBOR rates came under some upward pressure. MAS has responded by keeping a higher level of liquidity in the banking system through its market operations. S$ interest rates have since eased to below 2%.
MAS will continue to anticipate the market's funding needs, and will consider on a case-by-case basis any unique liquidity needs of individual banks. We stand prepared to inject additional liquidity as required."