SINGAPORE - Singapore's central bank said on Monday the city-state's money and financial markets were still functioning in an orderly fashion after the collapse of Lehman Brothers.

The banking community has also been discussing and preparing for the orderly settlement of outstanding positions with Lehman, the Monetary Authority of Singapore (MAS) said.

"MAS remains in close contact with the banks, SGX and relevant financial institutions to monitor developments and to see to the orderly function of the markets," the central bank said in an emailed statement.

Global financial markets were shaken on Monday after Lehman Brothers filed for bankruptcy protection and Merrill Lynch agreed to be taken over as a deepening credit crisis took new victims.