South Korea will closely watch for signs of impact on its financial markets and economy from the collapse of Silicon Valley Bank, the nation’s finance ministry said Sunday after a meeting of senior officials.
(Bloomberg) — South Korea will closely watch for signs of impact on its financial markets and economy from the collapse of Silicon Valley Bank, the nation’s finance ministry said Sunday after a meeting of senior officials.
The possibility of higher volatility and uncertainties can’t be ruled out, though most officials at the gathering agreed it won’t likely develop into a systemic risk, according to a statement from the finance ministry. The situation calls for round-the-clock monitoring and prompt response, it said.
Finance Minister Choo Kyung-ho and presidential secretary for economy Choi Sang-mok were among those at the meeting held to discuss the SVB fallout, according to the statement. The heads of the nation’s Financial Supervisory Service and Financial Services Commission were also present, along with Bank of Korea’s senior deputy governor.
Last week, SVB became the biggest US lender to fail in more than a decade after an unsuccessful attempt to raise capital and cash exodus from the tech startups that had fueled the lender’s rise. The collapse has led to fears of contagion around the world from London to Singapore. Asian bank shares fell on March 10 in reaction to the crisis, but to a limited extent.
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