'We will take any necessary measures to safeguard the stability of Singapore's financial system,' the MAS said in a statement released on Monday morning, emphasising that the financial system here 'remains stable and robust'.

The central bank also welcomed the announcement by the Group of Seven (G7) rich nations to work together to stabilise financial markets and restore the flow of credit and the specific initiatives announced by the Euro zone and UK governments.

This comes after a frantic weekend of talks between high level officials to rescue a global financial system teetering on the brink of collapse.

A meeting of the G7 finance ministers and central bankers in Washington resulted in a promise but no specific proposal to thaw frozen credit markets.

This was followed by an emergency summit of 15 Euro zone leaders in Paris on Sunday, as which they pledged to offer guarantees for new bank debt, and to use government money to prevent big lenders from going under.

The MAS has already injected more funds into a jittery money market earlier this month in response to upward pressure on Sibor rates.

The central bank said that banks, finance companies and insurance companies here are required to have assets exceeding their liabilities by an appropriate margin.

They are also required to follow strict regulations on capital, asset quality and risk concentration and to operate sound risk management systems and processes.

But markets here and around the world have continued to be nervous. The MAS said that it received queries on the global financial markets and major jurisdictions over the weekend.

The local Singapore dollar money and foreign exchange market have 'generally been calm and banks have been able to obtain funding in the interbank market,' said MAS.

The central bank said that it has kept a higher level of liquidity in the banking system.

'No extraordinary measures have been needed," it added.