Part 5/8:
Impact Beyond the U.S.: Asia and Global Banking
While the immediate impact is centered in the United States, the broader implications for Asia and global banking are more nuanced. Analysts generally believe that the collapse is unlikely to trigger a systemic contagion in Asian financial markets due to the region's relatively diversified deposit bases and conservative investment practices.
Most Asian banks fund their operations through diversified deposits, reducing the risk of sudden large withdrawals akin to those experienced by SVB. Furthermore, their bond holdings, while affected by rising rates, have so far resulted in only modest unrealized losses. These losses are already reflected in their regulatory capital ratios, which remain robust.