SVB failure offers lesson for China - state media

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SVB failure offers lesson for China - state media
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The collapse of Silicon Valley Bank (SVB) will not impact China's financial system but offers an important lesson for the country's banking industry, the official Securities Times said in an editorial on Wednesday.

China's smaller banks, more vulnerable to interest rate risks, could suffer from shrinking interest spreads and investment losses during a rate hike cycle, GF Securities said in a report this week.

The Securities Times said that while the SVB incident reflects loosened regulation of such banks in the U.S., a slew of financial regulatory reforms in China over the past years have cleaned up the industry, curbed shadow banking and reduced financial risks. In addition, China has been closing regulatory loopholes, the editorial said. In the latest move, China said last week it would set up a new national"Although the SVB incident won't have material impact on China's finiancial markets, China's financial industry still needs to earnestly learn from this lesson, and always prioritise risk prevention and control," the newspaper said.

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