As U.S. regulators race to contain the fallout from Silicon Valley Bank collapse, its failure has cast gloom across global markets, with Tokyo’s Topix index dipping at market opening this morning.
But while the shock of the biggest bank failure in the U.S. since the 2008 financial crisis is expected to reverberate outside the country, experts say the factors that led to the situation mean it is unlikely to have a big impact on Japan or East Asia.
Chief Cabinet Secretary Hirokazu Matsuno said that while the government will continue to closely monitor future developments and their impact on Japanese financial institutions, these “generally retain a strong liquidity and capital base, and we do not believe that the failure of Silicon Valley Bank is likely to have a significant impact on the stability of the Japanese financial system.”
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