SVB, a major lender for start-ups in the US, collapsed after a sudden run on deposits, prompting regulators to seize control last week. It had about US$209 billion in total assets before suddenly collapsing within 48 hours.
Additionally, Signature Bank, America’s 21st largest bank was also forced to close by the authorities.
The Joe Biden administration has moved to prevent financial contagion. It has unveiled emergency measures to guarantee the deposits of SVB’s customers.
In OJK’s statement, Mr Rae added that after the Asian financial crisis in 1998, Indonesia had taken fundamental steps to strengthen institutions, legal infrastructure, governance and customer protection, creating a robust, resilient and stable banking system.
OJK will continue to monitor various developments that are taking place globally and their implications for Indonesia’s banking sector, he added.
Meanwhile, the Monetary Authority of Singapore (MAS) has said that Singapore’s banking system has “insignificant exposures” to the collapse of SVB and Signature Bank.
On Wednesday, Malaysia’s Deputy Finance Minister Steven Sim told parliament that SVB’s collapse will have minimal and limited impact on banking institutions in the country.
The New Straits Times (NST) reported that Mr Sim said that Malaysia’s banking system remained competitive, resilient and continued to perform its role as an effective financial intermediary.
“In terms of regulation, capitalisation and also liquidity management, we have regulations that are quite strict,” he was quoted as saying by NST.
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