SINGAPORE — The banking system here has "insignificant exposures" to failed banks in the United States and remains "sound and resilient", the Monetary Authority of Singapore (MAS) said on Monday (March 13).

The financial regulator's statement came after the closure of two US banks — Silicon Valley Bank last Friday and Signature Bank on Sunday — continues to rock global financial markets.

The failure of Silicon Valley Bank, which has been one of the go-to banks for startups in the US since 2008, has been described as America's biggest banking failure since the 2008 global financial crisis.

Signature Bank's failure is the third-largest in US history, news agency Reuters reported.

In a press release, MAS said that the Singapore dollar money market and foreign exchange market "continue to function well".

Some reasons why banks in Singapore are able to weather potential stresses from global financial developments include having an ample amount of capital and having conducted regular stress tests against "interest rate and other risks".

Their liquidity positions are also healthy, underpinned by a stable and diversified funding base, the authority said.

"MAS is closely monitoring the domestic financial system and international developments," it added.

"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 authority is in contact with trade agency Enterprise Singapore to assess whether Singapore startups, including those with operations in the US, are affected by international developments.

Alongside other government agencies, MAS continues to monitor the situation closely, it said.