Highlights

  • APAC banks' deposits are generally not heavily concentrated on single clients: Moody's
  • On March 12, US regulators closed Signature Bank, just 2 days after shutting Silicon Valley Bank, following mass withdrawals of deposits

Latest news

Tragic Holi Incident: Young man strangled in Rajasthan's Dausa

Tragic Holi Incident: Young man strangled in Rajasthan's Dausa

Ceasefire helps Ukraine, Putin aide criticises

Ceasefire helps Ukraine, Putin aide criticises

President Murmu's holi message: embracing unity and diversity

President Murmu's holi message: embracing unity and diversity

Aamir Khan celebrates 60th birthday reflecting on life, music

Aamir Khan celebrates 60th birthday reflecting on life, music

iQOO Neo 10R Review: Performance Champ!

iQOO Neo 10R Review: Performance Champ!

Gold handed to Ranya Rao for smuggling

Gold handed to Ranya Rao for smuggling

Tamil Nadu embraces Tamil symbol in state logo for budget

Tamil Nadu embraces Tamil symbol in state logo for budget

Court urges SP MLA Abu Azmi to exercise caution in remarks

Court urges SP MLA Abu Azmi to exercise caution in remarks

U.S banking crisis to have limited impact on banks in India, Asia

Moody's says that rated banks in APAC structurally have stable funding and ample liquidity and that they are mostly funded with customer deposits, while their market borrowings are modest 

U.S banking crisis to have limited impact on banks in India, Asia

The impact of the Silicon Valley Bank and Signature Bank collapse in the U.S is likely to be limited as financial institutions in India as well as the Asia-Pacific, as per ratings agency Moody's.

"Most APAC institutions are not exposed to the failed US banks, and only a handful of institutions has immaterial exposures. Finally, most institutions are not as susceptible to large losses from debt security holdings as Silicon Valley Bank was," Moody's said.

The US-based rating agency said rated banks in APAC structurally have stable funding and ample liquidity and that they are mostly funded with customer deposits, while their market borrowings are modest at about 16% of their total assets on average.

Their business depositors are well diversified across different sectors, with no rated bank in the region being heavily exposed to technology companies. Also, APAC banks' deposits are generally not heavily concentrated on single clients.

The ratings agency also said Indian banks have faced strenuous challenges in the past decade, but their funding and liquidity have held up strongly and have been a key factor supporting their overall credit strength.

The Moody's report adds, "most institutions are not as susceptible to large losses from debt security holdings as Silicon Valley Bank was. The second order impact of the US bank failures is still developing and bear close watching."

On March 12, 2023, US regulators closed Signature Bank, just two days after shutting Silicon Valley Bank, following mass withdrawals of customer deposits.

ADVERTISEMENT

Up Next

U.S banking crisis to have limited impact on banks in India, Asia

U.S banking crisis to have limited impact on banks in India, Asia

Indian stock market sector-wise performance today - March 13, 2025

Indian stock market sector-wise performance today - March 13, 2025

Top 5 Nifty 50 gainers today – March 13, 2025: Biggest stock moves

Top 5 Nifty 50 gainers today – March 13, 2025: Biggest stock moves

NSE Nifty 50: Top 5 stock losers of March 13, 2025

NSE Nifty 50: Top 5 stock losers of March 13, 2025

IndusInd Bank faces Rs 2,100 Crore setback, shares plummet

IndusInd Bank faces Rs 2,100 Crore setback, shares plummet

Global stock market indices: How the world markets performed today - 12 March 2025

Global stock market indices: How the world markets performed today - 12 March 2025

ADVERTISEMENT

editorji-whatsApp

More videos

Indian stock market sector-wise performance today - March 12, 2025

Indian stock market sector-wise performance today - March 12, 2025

Global stock market indices: How the world markets performed today - 11 March 2025

Global stock market indices: How the world markets performed today - 11 March 2025

Indian stock market sector-wise performance today - March 11, 2025

Indian stock market sector-wise performance today - March 11, 2025

NSE Nifty 50: Top 5 stock losers of March 11, 2025

NSE Nifty 50: Top 5 stock losers of March 11, 2025

Top 5 Nifty 50 gainers today – March 11, 2025: Biggest stock moves

Top 5 Nifty 50 gainers today – March 11, 2025: Biggest stock moves

Global stock market indices: How the world markets performed today - 10 March 2025

Global stock market indices: How the world markets performed today - 10 March 2025

Global stock market indices: How the world markets performed today - 07 March 2025

Global stock market indices: How the world markets performed today - 07 March 2025

Indian stock market sector-wise performance today - March 10, 2025

Indian stock market sector-wise performance today - March 10, 2025

Top 5 Nifty 50 gainers today – March 10, 2025: Biggest stock moves

Top 5 Nifty 50 gainers today – March 10, 2025: Biggest stock moves

NSE Nifty 50: Top 5 stock losers of March 10, 2025

NSE Nifty 50: Top 5 stock losers of March 10, 2025

Editorji Technologies Pvt. Ltd. © 2022 All Rights Reserved.