<p>The Monetary Authority of
Singapore (MAS) has said that the collapse of Silicon Valley Bank (SVB) and other two
US-based banks has limited impact on startups in its ecosystem, including those
with operations in the United States.</p><p>The conclusion is based on initial
feedback, MAS announced on Monday, noting that it is working closely with
Enterprise Singapore, a statutory board under the country’s Ministry of Trade
and Industry, to assess any potential impact of the developments on the
country. </p><p>“MAS and other government
agencies will continue to monitor the situation closely for any signs of
stress,” the central bank noted.</p><p>Singapore Has “Insignificant Exposures” to Failed US Banks</p><p>Furthermore, the financial
regulator noted that the Singapore banking system, on the whole, has
“insignificant exposures” to the failed United States banks, adding that banks
in the Asian country are “well-capitalized and conduct regular stress tests
against interest rate and other risks.”</p><p>MAS also assured that the
country’s banking system remains “sound and resilient,” adding that the Singapore
Dollar money and foreign exchange markets “continue to function well.”</p><p>“MAS is closely monitoring the
domestic financial system and international developments. MAS 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,” the central bank explained.</p><p>US Sees Largest Bank Collapse
Since 2008</p><p>Last Friday, SVB, which targeted
its banking and lending services at early-stage technology companies, collapsed
following a run on the bank. As a result of higher interest rates, private
equity funding became more expensive for technology firms, resulting in more
withdrawals to meet their needs.</p><p>In a bid to meet customer’s
needs, the California-based bank made efforts to raise funds, including a plan
to offer $2.25 billion in common equity and preferred convertible stock. The
bank also sold its bond portfolio comprising majorly US government bonds at a $1.8
billion loss. </p><p>However, the efforts did not
salvage the bank as the struggling lender was later <a href=”https://www.financemagnates.com/cryptocurrency/svb-crisis-circle-escapes-usdc-depeg-with-regulatory-assurance/” target=”_blank” rel=”follow”>admitted under the receivership</a> of the Federal Deposit Insurance Corporation. The bank’s collapse has been described as the largest bank failure
since the 2008 financial crisis.</p><p>New York regulators on Sunday
would later <a href=”https://www.financemagnates.com/cryptocurrency/signature-bank-collapse-coinbase-and-paxos-disclose-massive-exposure/” target=”_blank” rel=”follow”>shut down Signature Bank</a> “to protect depositors.” Days earlier, another
struggling crypto-friendly bank, Silvergate, <a href=”https://www.financemagnates.com/cryptocurrency/silvergate-bank-announces-voluntary-liquidation-amid-troubles/” target=”_blank” rel=”follow”>winded down its operations</a> and voluntarily liquidated it assets.</p>
This article was written by Solomon Oladipupo at www.financemagnates.com.
