The financial stability of Singapore

• Main Authors: Chen, Hancai, Lee, Wayne Rui Han, Deeben Raj Rouben
• Other Authors: School of Humanities and Social Sciences
• Format: Final Year Project
• Language: English
• Published: 2014
• Subjects: DRNTU::Humanities; DRNTU::Social sciences::Economic development::Singapore; DRNTU::Science::General::Economic and business aspects
• Online Access: http://hdl.handle.net/10356/55958
• Institution: Nanyang Technological University

The purpose of our project is to analyse the resilience of Singapore’s financial system to a potential banking or currency crisis. Our goal is to critically analyse Singapore’s financial stability and whether Singapore has taken the relevant measure to ensure that she does not fall victim to either crisis. Considering a banking crisis in Singapore, we look at the state of the asset bubble in Singapore, particularly in such a historically low interest rate environment. After evaluating how Singapore has responded to the growing asset bubble, we explore the possibility of a banking crisis in Singapore. Considering a currency crisis in Singapore, we explore the issue of currency mismatch through looking at foreign currency borrowing. We then explore the possibility of a currency crisis by evaluating our position when enables us to defend our currency. Our paper shows that Singapore has strong fundamentals in the financial system and the necessary tools to enable Singapore to be resilient to potential crises.