MAS: Singapore banks' exposure to Credit Suisse 'insignificant'

MAS: Singapore banks' exposure to Credit Suisse 'insignificant'
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SINGAPORE (March 17): Singapore banks — DBS Bank, OCBC Bank and UOB Bank — have confirmed that their exposures to Credit Suisse Group AG are “insignificant”, according to the Monetary Authority of Singapore (MAS).

In a response to media queries related to recent developments surrounding Switzerland’s second-biggest bank, the central bank noted that “Singapore’s banking system remains sound and resilient”.

“Banks in Singapore are well capitalised and conduct regular stress tests against credit and other risks. Their liquidity positions are healthy, underpinned by a stable and diversified funding base,” said MAS.

In Singapore, MAS said that Credit Suisse operates a branch whose main activities are private banking and investment banking.

“It does not serve retail customers,” it said.

MAS said it has been in close contact with the Swiss Financial Market Supervisory Authority (Finma), the parent supervisory authority of Credit Suisse.

It noted that it will continue to closely monitor developments and remains in contact with Finma.

Finma and the Swiss National Bank have issued a joint statement on March 15, 2023 affirming that Credit Suisse continues to meet the higher capital and liquidity requirements applicable to Swiss systemically important banks, and that the Swiss National Bank stands ready to provide liquidity to the bank.

It was reported that Credit Suisse has secured a 50 billion Swiss franc (RM242 billion) lifeline from the Swiss National Bank.