Global financial risks rise from AI-driven debt, debt, and market strains, warns Singapore’s MAS.

Global financial stability risks have risen due to leveraged growth in AI and other sectors, rising sovereign debt, and stretched equity valuations, despite economic resilience, according to Singapore’s MAS. Geopolitical tensions, trade uncertainties, and potential market corrections pose threats, especially in tech and private credit markets. Singapore’s financial system remains sound, with strong banks, insurers, and corporate balance sheets, but MAS urges caution on debt and liquidity amid ongoing global uncertainties.