Singapore central bank ensures stability of financial system
13/10/2008 17:00
The Monetary Authority of Singapore (MAS) stressed today that the
city-state's financial system "remains stable and robust" and it is committed to
protecting its stability.
"We will take any necessary measures to safeguard
the stability of Singapore's financial system," the central bank said in a
statement released this morning, adding that it "stands prepared to inject
additional liquidity as required."
The central bank also welcomed the
announcement by the Group of Seven (G-7) rich nations to work together to
stabilize financial markets and restore the flow of credit, as well as the
specific initiatives announced by the Euro zone and UK governments.
"These
actions will help inject confidence into global markets, "said the central
bank.
Finance officials from the G-7 announced in Washington last Friday a
plan of action to battle the ongoing global financial crisis.
This was
followed by a summit of the 15 leaders of euro zone in Paris yesterday. They
tried to lay out a rescue strategy for banks battered by the financial
turmoil.
In Singapore, the MAS said that banks, finance companies and
insurance companies are required 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.
The domestic Singapore
dollar money and foreign exchange market have "generally been calm and banks
have been able to obtain funding in the interbank market," said the MAS, adding
that it " has kept a higher level of liquidity in the banking system."
The
central bank said that it received queries on the global financial markets and
major jurisdictions over the weekend.
It said that it has been monitoring the
developments closely as well as their impact on Singapore's markets and
financial institutions, however, "no extraordinary measures have been
needed."
Xinhua
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