On March 8, the primary lender to the cryptocurrency sector, Silvergate Capital, declared its voluntary collapse. The Silicon Valley Bank (SVB), the biggest bank in Silicon Valley by deposits, shut down on March 10 due to a rapid bank run that caused a capital crisis.
Concerns about the US economy and market volatility have been increased by the closure of Silvergate and SVB.
Suwannee Jatsadasak, the deputy governor of the BOT’s financial institutions, stated on Monday that no Thai banks or financial institutions had conducted direct business with Silvergate and SVB.
Additionally, such banks offered services to niche markets including venture capital, fintech, and startup businesses. She added that less than 1% of Thai commercial banks’ total money were used for transactions in the global fintech and startup markets, and that these institutions also possess digital assets with a market value of only 200 million baht.
According to Suwannee, the US government’s declaration that it would fully restore all deposits to the bank’s depositors and create a fund to improve banking liquidity would reduce the likelihood that the crisis would worsen in the US financial system.
Two US banks failing had less of an influence on Thai banking, according to BOT
As the Finance Ministry’s spokesperson, Fiscal Policy Office Director-General Pornchai Thiraveja stated on Monday that the ministry will keep a close eye on US financial developments and constantly assess any potential effects on the Thai economy.
While our nation has an unbreakable deposit protection mechanism that can endure any fluctuation, Thailand’s financial institute system is still robust and steady, he claimed. He continued by saying that there is no need to be alarmed about how the situation outside may impact Thailand’s banking sector.
