(Adds quotes from Suzuki, background on Japan's banking sector)
By Leika Kihara
TOKYO, March 15 (Reuters) - Japan's banking sector won't
face incidents similar to the collapse of U.S. lender Silicon
Valley Bank due to differences in the structure of bank
deposits, Finance Minister Shunichi Suzuki said on Wednesday.
"Japan's financial system is stable as a whole," as banks
have sufficient capital buffers against risks, Suzuki, who is
also the minister overseeing the banking sector, told
parliament.
Japanese banking shares on Tuesday tumbled the most since
the onset of the COVID-19 pandemic, as investors grappled with
contagion fears stemming from the collapse of SVB and New
York-based Signature Bank.
Losses in SVB's bond portfolio have highlighted similar
risks for Japanese lenders' gigantic foreign bond holdings,
which are carrying over $30 billion in unrealised losses.
While Japanese banks have suffered losses on their foreign
bond portfolios, they have been mostly offset by profits from
stock holdings, Suzuki said.
"For now, the chance of something similar to SVB's collapse
happening in Japan's banking sector is low," Suzuki said.
Japanese regional lenders also face smaller risks of a bank
run because their deposits consist mostly of small-sized ones
for individuals, unlike the fast-moving, big deposits of SVB, he
said.
(Reporting by Leika Kihara
Editing by Shri Navaratnam)
Messaging: leika.kihara.reuters.com@reuters.net))
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