Thai pension fund unaffected by US banks’ collapse: GPF chief

She said the fund members should not worry as GPF has been extra careful when selecting investments to guarantee long-term profits. She added that GPF will closely monitor the situation in the US.

The closures were sparked when Silvergate Capital, a leader in crypto lending, announced voluntary liquidation on March 8. Two days later, the Silicon Valley Bank (SVB) – the largest bank by deposits in Silicon Valley – closed after facing a sudden bank run, precipitating a capital crisis.

The following Sunday, New York's Department of Financial Services said it had taken possession of New York-based Signature Bank and appointed the US Federal Deposit Insurance Corp as the receiver.

The closure of these three banks triggered volatility in the global capital markets and raised concerns about the US economy.

Srikanya said GPF believes these closures will have a short-term impact on the US technological industry, in which venture capital, private equity groups and startup companies are relying on funds from the three banks.

She also reckoned that the US Federal Reserve will postpone hiking the policy rate in light of the bank closures. If the rate hike is postponed, then some of GPF’s investments will be affected, though such fluctuations are normal for the capital market, she said.

On Tuesday, the Deposit Protection Agency issued a statement confirming that over 90% of deposits at financial institutes in Thailand are still fully protected and that people’s savings will not be affected by the US bank closures.

The agency added that it has prepared several measures and tools to mitigate the impact any financial crisis may have on depositors. It has also promised to closely monitor the situation in the US.

On Monday, the Bank of Thailand said that no Thai banks or financial institutions had engaged in direct transactions with either Silvergate or SVB.

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