KUALA LUMPUR : Malaysia’s government on Wednesday said the country’s banks have limited exposure to Silicon Valley Bank that collapsed last week in the United States, triggering fear of contagion.

“Based on an assessment by authorities in Malaysia, the exposure of local banks to this crisis in the United States is minimal and limited,” Deputy Finance Minister Steven Sim said in parliament.

Malaysia’s banking system remains resilient and continues to carry out its role effectively, Sim said in response to a lawmaker’s question about any local impact from the crisis.

Regular stress tests are carried out within the banking system to ensure Malaysia is prepared to withstand any market pressure, Sim said.

Silicon Valley Bank collapsed on Friday in the biggest U.S. bank failure since the 2008 financial crisis.

Markets and financial authorities worldwide are on edge, with U.S. deposit holders seeking the safety of larger banks amid growing worries about the health of smaller institutions and the prospect of more failures in the sector.