The Philippine economy is spared from the high-profile collapse of the Silicon Valley Bank (SVB), the Department of Finance (DOF) said on Wednesday, March 15. Finance Secretary Benjamin E. Diokno said local banks have no exposure to the problems faced in the US financial sector in the aftermath of the SVB closure. “The Philippine economy is unaffected by the SVP collapse,” Diokno told reporters when asked about the closed California-based lender that specialized in financing startups. Diokno noted that the Philippine banking system is sound and well capitalized, adding that there was no reported exposure of local banks to SVP. “I think the Fed [US Federal Reserve] and US finance authorities have successfully ring fenced the banking turmoil,” the finance chief said. On Tuesday, Bangko Sentral ng Pilipinas (BSP) Chuchi G. Fonacier said that Philippines banks have no investments, dealings or transactions with SVB. Moreover, the Bankers Association of the Philippines (BAP) also issued a statement to calm the public and to voice its confidence in the “continued strength and stability of the Philippine banking system”. “The Bankers Association of the Philippines assures the Filipino public that recent developments in the U.S. financial system have no substantial or material impact on Philippine banks,” said BAP. It added that “banks have diversified deposit bases that include all sectors of the Philippine economy, allowing them to continuously provide the liquidity needs of their clients. Additionally, banks in the Philippines continue to have capital and liquidity ratios that exceed the requirements set by the Bangko Sentral ng Pilipinas.” The BAP, which has 44 members, said the BSP has laid down strong prudential measures to provide the local banking system the capability to “withstand economic shocks.” The group said they continue to work with the BSP to “pursue reforms that will lead to an even stronger financial system that sufficiently provides the financial needs of the banking public.” SVB, a bank lending to technology companies, was first reported to have problems a week ago, triggering bankruns. The US Federal Deposit Insurance Corp. has already placed the problematic bank under a deposit insurance bank. As of end-2022, the BSP is supervising 45 universal and commercial banks or the big banks. There are also 43 thrift banks, 403 rural banks and cooperative banks, and six digital banks.