The Bank of Thailand stated on Monday that the collapse of the U.S. tech-focused bank Silicon Valley Bank (SVB) should have a little effect on the Thai banking system, highlighting that the country’s financial stability remains solid, but it will continue to closely watch the situation and any potential impacts.
BOT assistant governor Suwannee Jatsadasak said the central bank did not anticipate any major effects on Thailand’s financial stability due to the lack of direct transactions between Thai banks and Silicon Valley Bank. Furthermore, Thai commercial banks spend less than 1% of their total capital in global Fintech and startups, and they do not hold any digital assets.
The baht is gaining in accordance with regional currencies, and the baht is anticipated to remain volatile due to uncertainties regarding U.S. monetary policy, according to a statement from the Bank of Thailand.
The U.S. Financial regulators on Friday ordered Silicon Valley Bank to shut down and named the Federal Deposit Insurance Corp. (FDIC) to take control of the bank’s deposits.
After the shutdown, the FDIC created the Deposit Insurance National Bank of Santa Clara, which now holds the insured deposits from SVB.
According to the announcement from the FDIC, insured depositors will be able to access their deposits no later than Monday morning. SVB’s branch offices will be reopened at the time as well, but under the control of regulators. However, 89% of SVB’s $175 billion in deposits were uninsured as of the end of 2022, and the progress remains uncertain at this point.