© Reuters. FILE PHOTO: The Fitch Ratings logo is seen at their offices at Canary Wharf financial district in London,Britain, March 3, 2016. REUTERS/Reinhard Krause
(Reuters) – Ratings agency Fitch said on Thursday that direct exposures to Silicon Valley Bank (O:) and Signature Bank (NASDAQ:) among its portfolio of rated banks in the Asia-Pacific (APAC) region appear limited.
Weaknesses that led to the failure of the two banks are among the factors already considered in the agency’s rating assessments for APAC banks, it said.
“We generally view securities portfolio valuation risks as manageable for APAC banks,” Fitch said, adding that exposures tend to be the highest in India and Japan.
The collapse of Silicon Valley Bank has sparked a crisis of confidence in the banking sector, leading to a run on deposits at a host of regional banks despite U.S. authorities rolling out emergency measures to shore up confidence.
Earlier on Thursday, S&P said the fallout from Silicon Valley Bank’s collapse may not lead to any rating actions on APAC banks as they are well placed to absorb potential contagion effects.
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