FILE PHOTO: Japanese Finance Minister Shunichi Suzuki attends a news conference after a meeting of G7 leaders on the sidelines of G20 finance ministers' summit on the outskirts of Bengaluru, India, February 23, 2023.
REUTERS/Samuel RajkumarTOKYO (Reuters) -Japan’s banking sector won’t face incidents similar to the collapse of U.S. lender Silicon Valley Bank due to differences in the structure of bank deposits, Finance Minister Shunichi Suzuki said on Wednesday.
“Japan’s financial system is stable as a whole,” as banks have sufficient capital buffers against risks, Suzuki, who is also the minister overseeing the banking sector, told parliament.
Losses in SVB’s bond portfolio have highlighted similar risks for Japanese lenders’ gigantic foreign bond holdings, which are carrying over $30 billion in unrealised losses.
“For now, the chance of something similar to SVB’s collapse happening in Japan’s banking sector is low,” Suzuki said.