Japan rules out similar collapses like Silicon Valley Bank.

On Wednesday, Japanese Finance Minister Shoichi Suzuki stated that the Japanese banking sector will not experience similar incidents as the collapse of US bank Silicon Valley due to the difference in the structure and deposits of banks between both countries.

Suzuki, who is also responsible for the banking sector, stated before the parliament that Japan’s financial system is generally stable as banks have sufficient reserve capital to face risks.

The collapse of Silicon Valley’s SVB bank is regarded as the biggest banking failure since the Washington Mutual Bank collapsed in 2008.

The bank failed to handle the massive withdrawal transactions of its depositors, especially technology companies, and its recent attempts to gather new funds were unsuccessful.

The collapse of S.V.P. had reverberations worldwide, prompting the British government to take measures to mitigate any fallout from the bank’s closure in the UK. Meanwhile, concerns were raised in countries such as Israel and India where technology companies rely on this bank.