March 15

Analysis: How US Bank SVB’s Failure Could Impact Latin America

Tightening credit conditions resulting from the collapse of Silicon Valley Bank (SVB) could restrict financing in emerging market economies such as Latin America.

SVB was focused on startups and heavily invested in US government bonds when the base rate was low. But the rate has increased and the investments contributed to losses of US$2bn as the bank had to dump bonds to finance massive withdrawals by its clients. The problems had already affected Signature Bank, which US regulators shut down over the weekend.

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Source: BNamericas (link opens in a new window)

digital finance, failure