The Prime Minister-led agency released a statement stating that the bankruptcy filings of Silicon Valley Bank pose a low risk to Japan’s financial system. The announcement cites Hirokazu Matsuno, the Secretary General of the Japanese Cabinet, as the source of the assessment.
We are aware of Silicon Valley Bank’s bankruptcy filing. At present, Japanese banks and financial institutions have adequate liquidity and strong capital buffers. Consequently, there is no expectation that this bankruptcy will significantly threaten the stability of Japan’s financial system at this time, according to Matsuno during a Monday news briefing.
Meanwhile in the United States, President Joe Biden was reported to have addressed the situation, with initial coverage indicating discussions among White House staff. The New York Times noted that the troubles facing Silicon Valley Bank could, in time, affect other sectors of the banking industry. In response, US Treasury Secretary Janet Yellen publicly reassured investors about the resilience of the American banking system. Earlier, a finance-focused outlet had suggested a potential crisis scenario if policymakers failed to outline a plan to protect SVB depositors by a stated deadline.