A sign of a branch of the Silicon Valley Bank is pictured at an office building where the bank is located in Frankfurt, Germany, March 13, 2023. (PHOTO / AP)
The Hong Kong Monetary Authority is keeping a close watch on the repercussions of the collapse of Silicon Valley Bank in the United States on Friday.
The collapse of SVB last week is the largest bank failure since the 2008 financial crisis
The local monetary authority moved to assure depositors that Hong Kong’s banking system is securely protected from any possible SVB fallout. Acknowledging the actions taken by overseas regulators against banks, HKMA pledged to keep an eye out for any further developments.
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It said on Monday that SVB is not authorized to carry out banking operations or deposit-taking businesses in Hong Kong.
A number of Hong Kong-listed companies with assets held in the bank issued statements saying that these accounted for no more than 10 percent of total assets and therefore the consequences wouldn’t be significant. Most of these companies specialize in biotechnology.
CANbridge Pharmaceuticals Inc said the amount of cash deposited with SVB is “immaterial and is generally within the amount guaranteed” by the US Federal Deposit Insurance Corporation.
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The collapse of SVB last week is the largest bank failure since the 2008 financial crisis.