Written Reply on Private Credit Risk Exposure of Singapore Financial Institutions

MAS Singapore News

Published April 7th, 2026

Detected April 7th, 2026

Summary

MAS responded to a parliamentary question regarding Singapore-domiciled financial institutions' exposure to US private credit markets. Deputy Prime Minister Gan Kim Yong confirmed that Singapore financial institutions have minimal exposure to US private credit despite record 9.2% default rates in 2025. MAS stated it regularly monitors risk exposures as part of supervisory oversight and engages financial institutions on stress testing balance sheets against global financial stress scenarios including private credit defaults.

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What changed

MAS confirmed through parliamentary reply that Singapore-domiciled financial institutions maintain minimal exposure to US private credit assets, despite supervisory reviews initiated by Bank of England, ECB, and SEC following record private credit default rates of 9.2% in 2025. MAS stated it regularly monitors risk exposures and conducts stress testing engagements covering global financial stress scenarios including private credit asset defaults.

For affected financial institutions, the response provides reassurance that systemic risk from US private credit is limited for the Singapore financial sector. Institutions should continue to monitor their own exposure levels and participate in any MAS-directed stress testing exercises. The parliamentary reply does not impose new regulatory requirements but signals continued supervisory attention to private credit risk.

What to do next

Monitor for updates on MAS supervisory assessments of private credit exposure

Source document (simplified)

Decrease font size Increase font size Print this page Parliamentary Replies Published Date: 07 April 2026

Written reply to Parliamentary Question on exposure of Singapore-domiciled financial institutions to US private credit

Date: For Parliament Sitting on 7 April 2026
Name and Constituency of Member of Parliament

Mr Kenneth Tiong Boon Kiat, Aljunied GRC

Question

Mr Kenneth Tiong Boon Kiat: To ask the Prime Minister and Minister for Finance given US private credit defaults reached a record 9.2% in 2025 and the Bank of England, European Central Bank (ECB), and the US Securities and Exchange Commission (SEC) have each initiated supervisory reviews of private credit risk exposure (a) whether MAS has assessed the aggregate exposure of Singapore-domiciled financial institutions to US private credit; (b) whether MAS has conducted or plans to conduct equivalent stress tests; and (c) if not, why not.

Answer by Mr Gan Kim Yong, Deputy Prime Minister and Minister for Trade and Industry, and Chairman of MAS:

Singapore financial institutions have very small exposure to private credit.
MAS regularly monitors the risk exposures of Singapore financial institutions as part of our supervisory oversight. This includes engaging financial institutions on stress testing their balance sheets, which features global financial stress scenarios such as defaults on private credit assets.