How does the fall of Silicon Valley affect banks in Mexico?

theto fall or to fall Silicon Valley Bank Causing great concern financial markets all over the world, fearing that this could lead to another crisis like the one in 2008 with bankruptcy Lehman Brothers.

This news left investors in a state of uncertainty, causing great fluctuations in the markets, one of whom was Mexican, who suffered from the news, as he again took dollar price Very close to 19 units.

Risk aversion resulting from the decline inSilicon Valley Bank It had an impact on the global economy, especially on the Mexican peso. Although there are such authorities as the Federal Reserve, the Treasury Department, the Federal Deposit Insurance Corporation, and the President Joe Biden They confirmed that the banking system is not in danger, Uncertainty affected for financial markets.

It is important to highlight that the Silicon Valley Bank It is a major financial institution for the tech industry and its fall could have major implications for the sector. In addition, the current state of the global economy makes it particularly worrisome, as it could have a negative impact on economic recovery.

How will the bankruptcy of Silicon Valley affect Mexican banks?

Director of Economic and Financial Analysis at Banco Base, Gabriela SilerEFE explained that the bankruptcy of SVB It will not generate an infectious effectOr towards the Mexican banking system, given that the regulation of the sector is much stricter in the country, which is why contagion to Mexico was avoided during the financial crisis in the United States of 2008.

The expert also stated that:Destroy the peso This is due to the increase in risk aversion in the global financial markets following the fall of the SVB Financial Group in the United States, which raised speculations about a possible crisis in the financial system.”

Why did Silicon Valley bank go bankrupt?

The fall of Silicon Valley Bank (SVB) came unexpectedly, after two days of intense movement that it witnessed Customers withdraw their deposits from the bank, in what is known as a bank scramble. This phenomenon is characterized by the massive withdrawal of deposits from the bank, often due to Rumors or negative news That generates panic among customers and investors.

What is Silicon Valley Bank?

Silicon Valley Bank (SVB) It is a commercial bank based in Santa Clara, California, which has provided for many years Financial services for technology companiesand life sciences, energy and sustainable resources, as well as venture capital and private equity firms.