Fitch ratings agency:
- our base case is that recent developments in the US will not cause major shifts in US monetary policy
- APAC banks resilient to risks highlighted by us bank failures
- Direct exposures to silicon valley bank (SVB) and signature bank among Fitch ratings' portfolio of rated banks in APAC appear limited
- Believe risk of deposit volatility could be significant for digital banks in APAC
- Generally view securities portfolio valuation risks as manageable for APAC banks, although exposures tend to be greatest in India and Japan
- Expect the Bank of Japan's yield cap to be raised by 50bp later this year, we do not see a sharp rise in JGB yields
- Direct exposures among Fitch-rated banks in APAC to SVB and Signature that we are aware of are not material to credit profiles
more to come
