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Philippine economy spared from Silicon Valley Bank collapse — Diokno

Finance Secretary Benjamin Diokno on Wednesday said the Philippine economy is spared from the potential impact of the collapse of Silicon Valley Bank (SVB) in the United States.

“[The] Philippine economy [is] unaffected by SVB collapse,” Diokno said in a Viber group message to reporters.

The Finance chief echoed Bangko Sentral ng Pilipines (BSP) Governor Felipe Medalla’s remark that the development in the American financial system will not trigger another financial crisis

“The Philippine banking system is sound and well-capitalized. There is no reported exposure of Philippine banks to Silicon Valley Bank,” Diokno said.

“Think the Fed and US finance authorities have successfully ring fenced the banking turmoil,” the Finance chief said.

Last week, news broke that Silicon Valley Bank, which specializes in financing startups, was shut down and its assets were seized by US authorities after it took a loss of $1.8 billion in the sale of $21 billion worth of securities.

Silicon Valley Bank’s collapse was feared to trigger a potential spillover across the entire US banking system.

The Bankers Association of the Philippines (BAP) on Tuesday said the Philippine banking system is strong and stable amid the collapse of Silicon Valley Bank in the United States, described as the American banking sector’s biggest failure since the 2008 financial crisis. — RSJ, GMA Integrated News