S&P Global Ratings: no direct threat to Latam financial system from SVB, Credit Suisse

A man points to electronic board showing the graph of the recent fluctuations of market indices at the floor of Brazil's BM&F Bovespa Stock Market in Sao Paulo

LONDON (Reuters) – The collapse of Silicon Valley Bank last week and the turmoil around Credit Suisse do not pose a direct threat to Latin America’s financial system, S&P Global Ratings said on Thursday.

“The direct impact of any particular institution, I don’t think is the main risk here,” Joydeep Mukherji, managing director & sector lead, Sovereign Ratings Americas, said during a media briefing.

However, the fallout of the recent events would likely be felt through its impact on market confidence and knock-on effect on monetary policy and interest rates from the U.S. Federal Reserve and other major central banks, Mukherji added.

“It makes a big difference to the region, whether U.S. interest rates go up dramatically, or they don’t go up – so I think that’s the larger impact.”

(Reporting by Karin Strohecker, editing by Jorgelina do Rosario)