SVB Will Not Cause Systemic Risk to Taiwan: Finance Minister 談矽谷風暴 財長:對台不至形成系統風險

Will the collapse of Silicon Valley Bank in the United States affect Taiwan? Minister of Finance Chuang Tsui-yun said in the Legislative Yuan today that the impact on Taiwan will be small and will not cause systemic risks. 

The chairpersons of the eight government-owned banks stood together and stated all of them will pay dividends this year. However, they also stated that it would be less than last year. Minister of Finance, Chuang Tsui-yun, who stood at the front, took a positive view. Chuang said the bankruptcy of America's Silicon Valley Bank will have a minor impact on Taiwan.

Chuang Tsui-yun, Finance Minister: “The Central Bank and our Financial Supervisory Commission have all explained that this does not pose a systemic risk to Taiwan. Taiwan's stock market, which has a considerable correlation with the US stock market, of course, has been volatile these two days. However, we believe that investors should have confidence.”

A series of international financial chain effects have caused uneasiness among investors. Chuang urged investors to have confidence because domestic banks have very low exposure to the three bankrupt American banks.

Lin Te-fu, Legislator (KMT): “Do you think the government has the ability to solve the problem if it really happens? ”
Chuang Tsui-yun, Finance Minister: “The FSC strictly regulates our financial banks. If problems do really arise, I believe our government is capable of handling the situation.”

Lin Chu-yin, Legislator (DPP): “At least make sure Silicon Valley Bank's collapse in the United States will not affect banks in Taiwan. ”
Chuang Tsui-yun, Finance Minister: “Our government-owned banks' exposure to the three banks is in fact only NT$1.53 million. So basically, very low.”

It has been 245 days since the National Financial Stabilization Fund entered the market last year to provide support. Both ruling and opposition legislators asked when it will leave the market. Chuang responded that they will discuss and make decisions depending on the international situation and the pace of U.S. interest rate hikes at the regularly scheduled meeting in April. At present, the Finance Ministry has only shares from government-owned enterprises for financing and hasn't deployed the four major funds. Thus, it is wrong to say that people's pensions will lose money because of this.









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