Tough regulations, diversified businesses, and extensive experience in high interest rate and high inflation environments should help prevent lenders in the region from facing the crisis stemming from the collapse of Silicon Valley Bank and Signature Bank, and the problems affecting the Credit Suisse Group. AG, according to analysts and investors.
The opinion is confirmed in the markets. While financial stocks in Latin America have been hit by global instability, the MSCI Emerging Markets Regional Index for the sector has suffered only a fraction of the losses incurred by US banks.
“I don’t think Latin American banks are directly exposed to this situation,” he said. said Malcolm Duerson, a portfolio manager at Mirae Asset Global Investments in New York. “Because of their proven track record, these banks are also used to fluctuations in interest rates and know how to hedge their risks.”
Moody’s Investors Service and S&P Global Ratings see banks in the region as having little or no exposure to SVB and Signature Bank.
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Moody’s said in Thursday’s report that reliance on local institutional markets for financing reduces liquidity risks, adding that He added that “high interest rates in general have supported the stability of deposits as a source of financing for banks across the region.”
For Carlos Aciles, the region’s banks are well capitalized, particularly in Brazil, where they were located Play defense.
The investment manager and founder of advisory firm Glovista Investments estimates that the only direct impact of the crisis in the US could be a widening of spreads around the world.
“Brazil It was emerging from a period of sub-trend growth.Asilis pointed out. “So the banks have been in a safe-haven mode for some time and have basically been building up capital reserves.”
However, deteriorating asset quality due to slowing economies and rising interest rates are hurdles, according to S&P analysts Cynthia Cohen Frio and Sergio Gariban. They said in a report on Wednesday that smaller, more concentrated financial institutions and financial firms in the region could be affected by the effects of an exodus to higher-quality assets.
While emerging markets largely escaped a recession this week, stock and bond dollar indices fell by only one 0.1% For each, equity and debt were recorded in the hard currency of developing countries $4.5 billion On departures in that period, according to JPMorgan Chase & Co.
In a press conference within the framework of the annual banking conference in Mexico, Raul Martinez Ostos, General Manager of Barclays Mexico, said that the country is considered to have an ideal banking system, well-capitalized and ready to withstand periods of volatility.
In any case, he added, the entity will be very attentive and vigilant because it believes, without any doubt, that the volatility will continue.
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