:quality(85)//cloudfront-us-east-1.images.arcpublishing.com/infobae/DSXMZGX5VREWJBQNWQUCXZD2PA.jpg "How the Silicon Valley Bank collapse is affecting banks in Mexico, experts say 1")
He closing operations of American banks, Bank of Silicon Valley y Signature Bankfor him mass withdrawal of deposits (digitally) by their savers last weekend, raises fears of a new economic crisis at the World level.
And it was about biggest US banking crash since 2008when he went bankrupt Lehman Brotherswhich has caused the vast majority of countries to suffer for several years, in particular Mexico.
In the current situation, the climate of uncertainty was reflected in the performance of the mexican pesowhat was one of the most losing parts at the close of business this Monday, March 13. It should be noted that at the beginning of March, it reached 17.96 pesos for 1 dollar, unheard of since 2017; however, after last weekend’s volatility, on Tuesday it depreciated to 18.61 pesos for 1 USD.
Despite the above, market specialists have pointed out that even if the collapse of American banks this will set a precedent in the Mexican financial systemas a more prudent short-term investment, a “devastating” scenario is not expected.
In regards to, Happy Raúl, Master in Economics from the Center for Economic Research and Education (CIDE), said in an interview for radio formula What There is no reason for a hypothetical “contagion of mistrust” in Mexico’s banks:
“Right now, there is a lot of mistrust (in the United States) and not knowing exactly which bank is liquid and which is not. People react with gregarious behavior (withdrawing deposits), to protect themselves, but this causes damage to banks that are still solvent (…) All financial systems are based on trust, and if it begins to be in doubt, it begins to suffer, and for this reason the intervention of the authorities is necessary.. That’s why the Treasury, the Federal Reserve and President Joe Biden’s speech had to step in,” he explained.
“(In Mexico) We have well capitalized banks and I don’t see elements, as long as confidence is maintained”
In this he accepted Gabriela Siler, director of financial analysis at Banco Base. On his Twitter account, he wrote that the main reason why major problems are not expected in Mexico is that “regulations are stricter”and for this reason, the risks during the 2008 crisis were lower compared to other Latin American countries.
“Given the collapse of SVB, we do not expect a contagion effect to the Mexican banking system”
In addition, he explained that other reasons why the Federal Reserve (Fed) and the US Treasury Department assured that they would intervene to insure the deposits of Silicon Valley Bank savers and The shareholders will bear the losses.
Finally, Jonathan HeathDeputy Governor of the Bank of Mexico (Banxico), declared on the site of the autonomous organization that the collapse of the American banks “It shouldn’t have a major impact on the Mexican financial system.”
“There are very typical intrinsic differences in our system that show little connection to what happened to these banks in the United States”
“We are monitoring all events very closely and analyzing possible effects. In particular, our Directorate General for Financial Stability performs continuous analyzes of this type of shock and informs us that they do not find significant impacts,” he explained.
However, it should be mentioned that the biggest losers in Mexico have been Banorte Financial Group there Bajio Bankwhose shares have fallen 6% and 8%, respectively, over the past five days.
It is expected that the theme of Silicon Valley and Signature to be one of the strengths of the Banking agreementorganized by the Association of Banks of Mexico (ATM) in the town of Merida, Yucatán. The meeting will take place on March 16 and 17 and it is expected that it will have the participation of the Secretary of Finance and Public Credit (SHCP), Rogelio Ramirez de la O; the Governor of Banxico, victoria rodriguez; as well as the president Andres Manuel Lopez Obrador.