Sifting fact from fear in SVB failure

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In: Asia, Business, Finance

Silicon Valley Bank, which catered to the tech industry for three decades, collapsed on March 10, 2023, after the Santa Clara, California-based lender suffered from an old-fashioned bank run. State regulators seized the bank and made the Federal Deposit Insurance Corporation its receiver. SVB, as it’s known, was the biggest US lender to fail since […]Continue Reading

In SVB collapse, Asia sees 1997 all over again

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In: Asia, Finance
A mournful Thai holds a Thai baht note. Photo: NurPhoto via AFP Forum/Anusak Laowilas

To understand the Silicon Valley Bank (SVB) collapse spooking markets, look no further than events in Jakarta. The Indonesian rupiah’s 3.2% drop since February 1 demonstrates how quickly Asia has resigned itself to the fact that the US Federal Reserve isn’t done tightening. Another batch of too-strong-for-Fed-comfort US employment figures in February only increased the […]Continue Reading

Feds try to stop bank crisis of their own making

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In: Asia, Finance

NEW YORK – US bank regulators Sunday announced a massive response to last week’s run on Silicon Valley Bank (SVB) and the risk of copycat runs against other regional banks. The Federal Reserve will provide one-year loans against banks’ security portfolios through a new Bank Term Funding Program, eliminating the risk that banks might be […]Continue Reading

In private equity investment slump, some exceptions

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In: Asia, Business, Finance

US private equity firms funded a scant $100 billion in new deals during 2022’s fourth quarter, barely more than a third of the 2021 peak, the website EY.com  reported. The trade group blamed “lingering impacts of the Covid-19 pandemic, rising interest rates at home, and conflicts abroad” for the poor showing. Private equity commitments in […]Continue Reading

How structural growth and stable funding anchor Indian and Indonesian financiers' resilience

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In: Asia, Finance, South-East Asia

India’ s domestically-driven economy and Indonesia’ h commodity-led exports should provide some strength despite a more difficult operating environment characterised by higher global inflation, rising rates of interest and liquidity tightening. Elaine Koh, senior director for Asia-Pacific non-bank financial institutions from Fitch Ratings talks about the prospects meant for India and Indonesia’ s finance and leasing sector in the current economic environment.Continue Reading