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US banks’ collapse not hurting Thailand, govt says
The collapse of Silvergate Bank and Silicon Valley Bank in the United States is unlikely to have any impact on Thailand because Thai banks do not invest in them, according to a government spokeswoman.
Traisuree Taisaranakul, deputy government spokeswoman, said on Monday that the collapse of the two banks in the US last week caused fluctuations worldwide in money and capital markets, but was unlikely to have any impact on the Thai economy.
Thai financial institutions neither invested in nor made any transactions through the two banks, she said.
The impact on the financial sector of the US was expected to be limited because the business areas of both banks were limited and US authorities quickly resolved related problems, Ms Traisuree said.
Financial institutions in Thailand were strong because they had been serious about managing risk since the 1997 economic crisis, she said.
“Despite many global financial crises and the Covid-19 crisis, Thai financial institutions, commercial banks and state-owned banks, continue to support the Thai economy with their strong status,” the government spokeswoman said.
She said that at the end of last year Thai commercial banks had a capital adequacy ratio (BIS ratio) of 19.4% and liquidity coverage ratio of 197.3%. Non-performing loans formed only 2.73% of all loans and the NPL coverage ratio was as high as 171.9%.
The Deposit Protection Agency had a 134-billion-baht fund to protect the money of 98% of depositors, Ms Traisuree said.
Source: https://www.bangkokpost.com/business/2526694/us-banks-collapse-not-hurting-thailand-govt-says