Interbank contagion risks pose low threat to Philippines and Asia, says experts

Interbank contagion risks arising from the banking crisis in the US and Europe are “quite small” for Philippine and Asian banks that are less dependent on offshore funding, according to DBS Bank Ltd. of Singapore.

Chang Wei Lang, foreign exchange and credit strategist at DBS, said there are limited risks of contagion to Asian banks that have different business models and risk factors.

Unlike the global financial crisis in 2008-2009, Lang said the financial shocks arising from the closure of Silicon Valley Bank and Signature Bank in the US as well as the deposit run that affected Credit Suisse in Europe are not transmitted by connections among financial institutions.

Source : Interbank contagion risks pose low threat to Philippines and Asia, says experts