Local banks stocks dipped on March 16 as fears of exposure to Credit Suisse and a series of US bank failures spread to Singapore. However, all three banks have said their exposure to the Swiss bank is insignificant.
In response to queries, a DBS spokesperson says the bank’s exposure to Credit Suisse is “insignificant”. Similarly, a UOB spokesperson said its exposure to Credit Suisse is insignificant, as did OCBC’s head of group brand and communications Kok Ching Ching of OCBC's exposure to Switzerland’s second largest bank.
Credit Suisse operates a branch in Singapore whose main activities are private banking and investment banking and does not serve retail customers.
The Monetary Authority of Singapore says it has been in "close contact" with its counterpart, the Swiss Financial Market Supervisory Authority (FINMA), the parent supervisory authority of Credit Suisse Group AG (CS), on recent developments surrounding the bank.
MAS notes that FINMA and the Swiss National Bank (SNB) have issued a joint statement on March 15 affirming that Credit Suisse continues to meet the higher capital and liquidity requirements applicable to Swiss systemically important banks, and that SNB stands ready to provide liquidity to the bank.
"Singapore’s banking system remains sound and resilient. Singapore banks have confirmed that their exposures to Credit Suisse are insignificant. 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," says MAS.
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"MAS will continue to closely monitor developments and remains in contact with FINMA," Singapore's central bank adds.
DBS shares closed March 16 at $32.55, down 1.27%, while OCBC dipped 0.98% to $12.15 and UOB slid 0.71% to $28.00.