MAS Monitors Banks' Exposure To CDOs

Source : The Business Times, August 24, 2007

SINGAPORE - Singapore's central bank said on Friday that it would continue to look at financial institutions' exposure to collateralised debt obligations and urged banks to stress test their holdings.

The comments by the Monetary Authority of Singapore come after Singapore's DBS Group Holdings, South-east Asia's biggest bank, said it has more direct exposure to CDOs than previously declared, sending its shares down over 2 per cent.

'MAS continues to monitor the development of the US subprime market and the financial institutions' exposure to this sector as part of our market surveillance process,' the central bank said in an email to Reuters. 'We also continue to remind (financial institutions) to factor in the current environment into their regular stress testing and take appropriate action where necessary.' -- REUTERS