No ripple effect in Thailand from US banking crisis, says Finance Minister
![No ripple effect in Thailand from US banking crisis, says Finance Minister](https://thethaiger.com/wp-content/uploads/2023/03/banking.jpg)
Finance Minister Arkhom Termpittayapaisith insists that the recent troubles faced by some major banks in the United States have had no impact on Thailand so far. Arkhom added that the government is prepared to take action in case of any potential volatility that may arise from global markets.
The comments were made in response to the recent collapse of Silicon Valley Bank (SVB), which triggered concerns about contagion effects on Asian stock markets.
Despite the initial panic, the Stock Exchange of Thailand‘s (SET) main index rebounded by 2.49% to close at 1,561.97 on Wednesday morning. On Tuesday, the index had closed at 1,523.99, down by 3.13%, in trade worth 103.8 billion baht, reported Bangkok Post.
The SET reassured investors that the sell-off was an overreaction to the situation, and the market responded positively yesterday as fears of a broader fallout from the collapse of SVB eased.
Asian banking stocks also saw gains on Wednesday, with the MSCI Asia Pacific Financials Index advancing by up to 2%, following three days of losses triggered by the SVB, and Signature Bank collapses. The Topix Banks Index in Japan surged by up to 4.6%, partly reversing its 16% drop over the past three sessions. Separate gauges of financials in South Korea, Australia, and Hong Kong also saw gains.
The fears about the health of the US financial system and its potential impact on the global economy have gradually subsided, with expectations that the worst of the fallout may have passed. The aggregate market value of companies included in the MSCI World Financials Index and the MSCI EM Financials Index had dropped by more than US$450 billion over the past three sessions.
The Finance Minister’s statement and the rebound in Asian stock markets demonstrate that there is still confidence in the resilience of the financial system in the face of potential volatility. However, it is clear that the government and financial institutions remain vigilant in the face of any potential fallout from global markets.
Business News