Silvergate Capital, a central lender to the crypto industry, announced voluntary liquidation on March 8. The Silicon Valley Bank (SVB) – the largest bank by deposits in Silicon Valley – closed on March 10 after facing a sudden bank run, precipitating a capital crisis.
The closure of Silvergate and SVB has triggered volatility in the global capital markets and raised concerns about the US economy.
BOT deputy governor of financial institutes Suwannee Jatsadasak said on Monday that no Thai banks or financial institutions had engaged in direct transactions with Silvergate and SVB.
Furthermore, those banks provided services to specific groups, namely venture capital, fintech, and startup companies. Thai commercial banks have transactions in global fintech and startup markets valued at less than 1% of their entire funds, she said, adding that Thai commercial banks also hold digital assets worth only about 200 million baht.
Suwannee said the US government’s announcement that it would return all funds to the bank’s depositors in full, and establish a fund to increase US banking liquidity, would minimise chances of the crisis escalating in the US financial system.
Fiscal Policy Office director-general Pornchai Thiraveja, who acts as Finance Ministry spokesman, said on Monday that the ministry will continue to monitor the financial situation in the US closely and regularly evaluate possible impacts on the Thai economy.
“Thailand’s financial institute system is still strong and stable, as our country has an ironclad deposit protection system capable of withstanding any fluctuation,” he said. He added that any panic that the situation overseas will affect Thailand’s financial institute system is misplaced.