Banks in the Asia-Pacific region would face little impact from the bankruptcy of U.S. credit institutions because of their stable funding sources and ample liquidity, international rating agency Moody’s Investors Service said Tuesday. It should be noted that against the backdrop of recent events, volatility was observed even on the chart of the S&P 500.

U.S. banks are pushing the world into a new crisis

Earlier in March, it was announced that Silvergate Bank, Silicon Valley Bank and Signature Bank were closing. The bankruptcy of SVB was the largest bankruptcy in the United States since the financial crisis of 2008. The collapse of SVB was associated with the growth of the U.S. Federal Reserve discount rate, which led to depreciation of assets on the balance sheets of many financial institutions. The U.S. authorities have announced support measures.

“Banks in the region, including China, Japan, Taiwan, India, South Korea and Singapore, are mostly funded by customer deposits, while their market borrowing is modest, averaging about 16 percent of their total assets,” the agency said.

It is specified that depositors of Asian banks belong to different sectors, and none of the major banks in the region is not subjected to a strong dependence on technology companies.

We previously reported that global financial markets have lost $465 billion because of the bankruptcy of SVB.