Haddad: Information on bank collapses in the US is insufficient

The closure of the 2 banks was introduced by US monetary authorities. Silicon had a powerful presence in financing startups and had chapter introduced on Friday (10). The closure of Signature Financial institution was introduced this Sunday (12).

Haddad mentioned that he mentioned the topic with the president of the Central Financial institution, Roberto Campos Neto, over the weekend. “I’ve additionally been speaking to the Brazilian monetary system and Brazilian banks to search out out what their notion of threat is. What I can say is that, firstly, the knowledge remains to be not sufficient for us to know the dimensions of the issue”, mentioned the minister at present (13) throughout his participation within the E Agora Brasil occasion, promoted in Brasília by the Globo group.

In his analysis, the motion of the US central financial institution (Fed) over the weekend “was constructive, guaranteeing depositors”. “That is the primary measure to keep away from a financial institution run”, he added.

Haddad recalled that Silicon Valley is a regional financial institution that operates in a really concentrated method in Silicon Valley. “It isn’t a top-tier financial institution and it has a mismatched portfolio,” he mentioned with out going into additional element.

The minister mentioned he doesn’t know if the state of affairs will lead to a systemic disaster. “Apparently, I have never seen anybody deal with this episode like Lehman Brothers (the financial institution whose chapter resulted within the 2008 monetary disaster), however the reality is that what occurred is severe, however the Fed acted on the finish of the week. We are actually going to observe this and see if the financial authority in Brazil must take some motion as a result of results on the peripheral economies, however this isn’t but clear.”