singaporethe nearterm risks to global financial stability have intensified as economies cope with tighter financial conditions elevated input costs and slowing growth the monetary authority of singapore said in its financial stability review on friday key funding markets face heightened risks of dysfunction with cascading liquidity strains on nonbank financial institutions mas said in its review deterioration in financial positions of companies and households could weaken banks asset quality while emerging markets are vulnerable to sharp pullbacks in external debt financing and more volatile capital flows the central bank said the financial stability review presents mass assessment of the resilience of singapores financial system against the backdrop of global risks and domestic vulnerabilities the central bank said for singapore companies households and financial institutions need to be prepared for a more challenging macrofinancial environment the mas said in its review under stress tests domestic companies generally have adequate buffers to mitigate the impact of shocks to revenue business costs and interest rates mas said however companies with higher leverage or lower cash reserves should seek to strengthen liquidity positions and manage their debt maturity the central bank said most households in singapore appear to be resilient to income and interestrate shocks and the proportion of nonperforming mortgage loans is expected to remain low the mas said but some households have been found to be more vulnerable to adverse shocks and need to be cautious about taking on additional debt in the current environment the central bank added singapores financial institutions would be able to manage their risks even under adverse conditions the mas said noting banks and insurers have strong capital and liquidity buffers under adverse scenarios of the industrywide stress test fund managers in singapore have been able to meet redemptions while financial institutions should review their capacity to cope with possible disruptions of liquidity in key funding markets the mas said