affirmed that the financial crisis in the United States, with the collapse of Silicon Valley Bank (SVB), has not been noticed in Peru, saying that there was only a slight drop in bank shares.
"Here, the effect of the banking crisis has not been noticed; share prices have dropped slightly as has happened with banks around the world, but (up to) a minimal amount," BCR Governor Julio Velarde said during the presentation of the latest Inflation Report on Friday.
"What has happened is that a bank, which (had) invested money in long-term bonds, collapsed and had a huge loss," he explained.
The economist pointed out that, after the collapse of Silicon Valley Bank, the expectations for U.S. Federal Reserve interest rates adjustment were reduced.
"The consequence of this financial crisis has made the futures market expect not only a minor rise in interest rates, but also a faster decline," he indicated.
The
BCR Governor explained that what had
happened with Silicon Valley Bank is a problem derived from the reduction in regulations back in 2019, during ex-President Donald Trump's administration, since banks were not subjected to stress tests.
"It is a bank ranked 17th or 18th in the United States, a small one, because it was still regulated by regional authorities, although it is indeed big for us because it is bigger than the entire Peruvian banking system, plus the Central Bank together," he explained.
The
BCR Governor pointed out that
what is happening now is a drop in bank shares, adding that it is a consequence of the fact that shareholders have lost their capital.
"In the case of Silicon Valley Bank, to a large extent, but also in Credit Suisse, the losses in shares value have been huge," Velarde indicated.
"Those who have ended up losing, as it should be, are the owners, and those who have been saved in the United States have been the depositors," he concluded.