SINGAPORE (Nov 22): Risks to global financial stability have heightened amid tighter financial conditions and rising global trade tensions, warns the Monetary Authority of Singapore, the republic's de facto central bank.

This is because rising interest rates and pressure on currencies could weaken debt servicing abilities of countries, companies and households, in particular those who have borrowed in foreign currencies, says MAS in its Financial Stability Review for November which was released on Friday.

And while the profitability and debt profiles of Singapore companies remain sound so far, MAS says firms should remain cautious of potential external headwinds.

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