Silicon Valley bank collapsed, will it affect Peru’s economy?

On Friday, March 10, a Silicon Valley bank was declared bankrupt and shut down by US authorities, raising fears that the entire US banking industry would collapse.

The fall of Silicon Valley Bank came after the federal government learned that essence she sold $21 billion in assets and dumped shares to raise money amid insolvency problems.

“The failure of Silicon Valley Bank is a side effect of what the technology industry is going through in the US, which is going through difficult times due to rising prices. interest ratesreducing the risk appetite of investors,” explained Enrique Castellanos, professor of economics at the University of the Pacific.

It’s the bank’s biggest drop since the collapse of Lehman Brothers in 2008, but could the dissolution of the tech benchmark bank affect Peru?

“Everything that happens in the world makes Peru nervous. It affects us implicitly, but indirectly. No. bank The Peruvians are exposed, the money is placed in Silicon Valley, the immediate effect will be minimal, ”commented Castellanos.

The Economist adds that the impact in Peru is largely in line with expectations as it breeds uncertainty and refreshes the notion that banks are vulnerable to these issues despite their soundness.